Question
The demand of a commodity is a direct demand but the demand of a factor of production is called a
Answer: Option A
Answer: (a)
In the words of McConnell, the demand for factors of production is a derived demand that is derived from the finished goods and services which resources help to produce.
While the demand for goods is direct demand, demand for factors is derived from demand. It is based on the productivity of the factors.
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Answer: (a)
In the words of McConnell, the demand for factors of production is a derived demand that is derived from the finished goods and services which resources help to produce.
While the demand for goods is direct demand, demand for factors is derived from demand. It is based on the productivity of the factors.
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