Which of the Following Correctly Identifies the Difference Between the Demand

question 102

Multiple Choice

Which of the following correctly identifies the difference between the demand for factors of production and the demand for final goods?

• A) The demand for factors of production is fixed over time, whereas the demand for final goods changes with changes in tastes and preferences.
• B) The demand for final goods is fixed over time, whereas the demand for factors of production changes with changes in tastes and preferences.
• C) The demand for final goods is derived from the demand for labor, whereas the demand for factors of production is independent of the demand for final goods.
• D) The demand for factors of production is derived from the demand for final goods, whereas the demand for final goods is independent of the demand for factors of production.

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Definitions:

Breaking Even

Refers to the point at which total revenues equal total costs or expenses, resulting in no profit or loss for a business.

Selling Price

The amount for which a product is sold to the customer, determining the revenue generated from sales.

Financial Advantage

The benefit gained in financial terms, often through investment decisions, operational improvements, or strategic actions.

Calculators

Electronic devices or software applications used for making mathematical calculations, ranging from basic arithmetic to complex computations.