Which of the following is an example of a derived demand?
A. Demand for food by consumers
B. Demand for cars by households
C. Demand for labour by firms
D. Demand for entertainment
Answer: Option C
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.
Explanation:
The Solow residual is the portion of output growth that cannot be explained by the growth of capital and labour inputs; it is attributed to technological progress or total factor productivity.
Explanation:
Seigniorage is the purchasing power that the government obtains by issuing base money; it equals the real value of the increase in base money.
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