To What Does the Term 'Derived Demand' Refer

question 108

Multiple Choice

To what does the term 'derived demand' refer?

• A)The demand for financial products called derivatives.
• B)The demand for a factor of production that is derived from the demand for the good the factor produces.
• C)A firm's estimated demand curve derived from sales data.
• D)A demand curve that derives from the availability of resources.

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Definitions:

Net Asset Balance

The total assets minus total liabilities of a company, showing the net book value of the company's equity.

Restricted Fund Method

An accounting method used by not-for-profit organizations to distinguish between resources that are restricted by donor-imposed stipulations and those that are not.

Internally Restricted

Funds or assets within an organization that are designated for a specific purpose by the entity's management, not external restrictions.

Externally Restricted

Funds or resources that are restricted in use by external parties or agreements, often specified for particular purposes or projects.