A firm's demand for labor is referred to as a derived demand because
A. The quantity of goods and services labor can purchase is derived from the wages labor receives from the firm.
B. It is derived from the supply of labor.
C. It is derived from the MPP of labor.
D. It is derived from the demand for the product that the labor is producing.
Answer: D
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In the above figure, what could cause the shift of aggregate demand fromAD1 to AD2?
A) depletion of raw materials B) an increase in international trade barriers C) a decrease in consumer confidence D) an increase in input prices
When society must decrease the production of something in order to produce more of another good or service, society has necessarily achieved
A) only production efficiency. B) only allocative efficiency. C) both production efficiency and allocative efficiency. D) a free lunch. E) the maximum opportunity cost..