ECN 104 Chapter 18: Chapter 18 - The Markets for the Factors of Production

Derived demand is
A. consumer demand for goods and services.
B. based on the prices of factors of production.
C. the demand for factors of production directly by business.
D. the demand for factors of production dependent on consumer demand for output.
E. calculated for firms.

Capital, labor, and land:

a. have derived demands.

b. are factors of production.

c. are inputs used in the production of goods and services.

d. all of the above are correct.

The factors of production are best defined as the

a. output produced from raw materials.

b. inputs used to produce goods and services.

c. wages paid to the workforce.

d. goods and services sold in the market.