The Demand for a Factor of Production Is Called a Derived

question 109

Multiple Choice

The demand for a factor of production is called a derived demand because it is derived from

• A) the demand for goods and services produced by the factor of production.
• B) a table of specific prices and quantities.
• C) the ideas of an entrepreneur.
• D) a financial market.
• E) the supply of the factor of production.

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Definitions:

Operating Activities

Transactions and events that relate to the primary operations of the company, including revenue and expense activities.

Cash Flows

The cash that is moving into and out of a business, representing its operating, investing, and financing activities over a specific period.

Ending Inventory

The worth of products ready for purchase at the conclusion of a financial period.

Understatement

An error or omission that causes the reported amount or value of an asset, liability, income, or expense to be lower than the true amount.