[amp_mcq option1=”More demand due to inflation” option2=”Aggregate demand for goods” option3=”More demand due to higher income” option4=”Demand for a factor of production” correct=”option4″]<\/p>\n
The correct answer is: D. Demand for a factor of production.<\/p>\n
Derived demand is the demand for a good or service that arises from the demand for another good or service. For example, the demand for labor is derived from the demand for goods and services that labor produces. If the demand for goods and services increases, the demand for labor will also increase.<\/p>\n
Option A is incorrect because inflation is a general increase in prices. It does not necessarily lead to an increase in the demand for goods and services.<\/p>\n
Option B is incorrect because aggregate demand is the total demand for goods and services in an economy. It is not the demand for a specific good or service.<\/p>\n
Option C is incorrect because higher income can lead to an increase in the demand for goods and services, but it does not necessarily lead to an increase in the demand for factors of production. For example, if people have more money to spend on food, they may buy more food, but they may not hire more cooks.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”More demand due to inflation” option2=”Aggregate demand for goods” option3=”More demand due to higher income” option4=”Demand for a factor of production” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-51763","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n