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Economics miscellaneous

  1. The demand of a factor of production is
    1. direct
    2. derived
    3. neutral
    4. discretion of the producer
Correct Option: B

There are 4 factors of production; land, labor, capital and entrepreneurship. The demand for the factors of production is a derived demand. That means these factors of production are demanded because there is a demand for the end product they produce.



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