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GCE Economics 2023 Objective — Question 6

Question 6 of 50 from the General Certificate of Education (GCE) Economics 2023 Objective paper, with the correct answer and a full explanation.

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The demand for a factor input as a result of the demand for its output is known as A. complementary demand B. competitive demand C. derived demand D. market demand

Diagram for question 6
  • A. complementary demand
  • B. competitive demand
  • C. derived demandCorrect
  • D. market demand

Explanation

The demand for factor inputs (land, labour, capital) is a derived demand - it exists only because of the demand for the output/commodity the input helps to produce.

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