State whether the following statement are TRUE and FALSE. 1. Demand for labour is direct demand.

State whether the following statement are TRUE and FALSE.

1. Demand for labour is direct demand.

Demand for labour is direct demand. False

Explanation:


No, it is not correct. Demand for labour is not direct demand, rather, it is a derived demand. This  is because, labour is demanded in the production process to produce goods and services which are further sold in the market. In this way demand for labour is dependent on the demand for the goods and services in the production of which it will be used.

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