Question

Derived demand is the demand for (LO1) a) final goods and services b) resources c) final goods as well as services and resources d) neither final goods and services nor resources

Short answer

Derived demand is the demand for resources (option b), which are used in the production of final goods and services, resulting from the demand for those goods and services.

Step-by-step solution

Introduction

Derived demand is an economic term that is used to describe the demand for a product or resource.

Evaluate the options

We have four options to choose from: a) final goods and services b) resources c) final goods as well as services and resources d) neither final goods and services nor resources

Identify the correct definition

Derived demand refers to the demand for resources that are used in the production of final goods and services. Therefore, the correct answer is: b) resources

Conclusion

Derived demand is the demand for resources, which results from the demand for the goods and services these resources are used to produce. In this case, the correct answer is option 'b', which defines derived demand as the demand for resources.