Which of the following is an example of a derived demand? MCQ with Answer and Explanation

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Which of the following is an example of a derived demand?

A. Demand for food by consumers

B. Demand for labour by firms

C. Demand for cars by households

D. Demand for entertainment

Answer: Option B

Solution (By JKSSB Mock Tests)

Derived demand is the demand for a factor of production that arises from the demand for the final product it helps produce. Demand for labour is derived from the demand for goods and services.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The yield on a bond and its price have an inverse relationship. If market interest rates rise, the price of an existing bond:

A. falls

B. remains unchanged

C. rises

D. becomes zero

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Correct Answer: Option A

Explanation:
When market interest rates rise, existing bond prices fall because their fixed coupon becomes less attractive.

This question belongs to: Economy GK Economy Set 1

Question #2

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The concept of 'Digital Public Goods' refers to:

A. Open-source software, open data, open AI models and open standards that are freely available and contribute to sustainable development

B. Only physical public goods

C. Only proprietary software

D. Only privately owned digital platforms

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Correct Answer: Option A

Explanation:
Digital public goods are open-source software, open data, open AI systems, open standards and open content that adhere to privacy and other best practices and help attain the Sustainable Development Goals.

This question belongs to: Economy GK Economy Set 1