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When Economists Say That the Demand for Labor Is a Derived

Question 134

Multiple Choice

When economists say that the demand for labor is a derived demand, they mean that it is


A) dependent on government expenditures for public goods and services.
B) related to the demand for the product or service labor is producing.
C) based on the desire of businesses to exploit labor by paying below equilibrium wage rates.
D) based on the assumption that workers are trying to maximize their money incomes.

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