​Which of the Following Is Not an Example of Derived

question 97

Multiple Choice

​Which of the following is not an example of derived demand?

• A)Increased interest in gardening during the spring leading to an increase in the demand for hoes and shovels
• B)Strong ticket sales for a concert causing the producers to schedule an extra show and demand more ushers
• C)Increased use of robots leading to a decrease in the demand for labor
• D)The development of alternative fuels made from corn leading to an increase in the demand for corn
• E)Increasing demand for music leading to the construction of more recording studios

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Definitions:

Investments

Assets or items acquired with the goal of generating income or appreciation over time.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan balance.

Non-interest Bearing

A financial term indicating a debt or deposit that does not accrue interest over time, identical in concept to its prior mention but explained with different wording.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, compounding the amount on which future interest is calculated.