The demand for labour is called

A. Derived Demand

B. Factory Demand

C. Market Demand

D. Direct Demand

Ans. (A) Derived Demand

Explanation :

The demand for labor is "derived" from the production and demand for the product being demanded. If the demand for the product increases two things will probably happen: 1) the price will increase and 2) the demand for production labor will increase until the equilibrium price and production numbers are met. Labor is "derived" from the market demand for the product.