Which fifth factor of production do many economists now include in addition to the four traditional factors of labor, capital,

Question

3 years ago

14

Which fifth factor of production do many economists now include in addition to the four traditional factors of labor, capital,

entrepreneurs, and physical resources? A. Externalities B. Political resources C. Social responsiveness D. National resources E. Information resources

Business

2 answers:

Tomtit [17] · Answer 1 · 2022-09-19T05:19:30+03:00

Answer:

The correct answer is E, Information Resources.

Explanation:

Factors of production include Labor, Capital, Entrepreneurs and physical resources. But in the recent years, information has become the vital resource for organizations. Correct information and knowledge about a specific thing is crucial to the organization. For example if a company wants to introduce its new product and specifies a target audience, if the company doesn't get the accurate information about the needs and demands of that specific target area, other factor of production won't be of any use. So this information resource has become a vital and important part of the factors of production.

STALIN [3.7K] · Answer 2 · 2022-09-19T07:00:00+03:00

The option E is correct. Information resources are the fifth factor of production that many economists now include in addition to the four traditional factor labor, capital, entrepreneurs and physical resources.

Further Explanation:

Factors of production are defined as the items that are necessary to produce the goods in the market. The producer cannot produce the goods without the help of factors of production. There are major four types of the factor of production, which is labor, capital, entrepreneurs and physical resources. Now one more factor of production is added which is information resources.

Justification for the correct and incorrect answer:

A.

Externalities: This option is incorrect.

Externalities refer to the effect on society by producing goods. The effect can be on health and other government properties. So, this cannot become the fifth factor of production.

B.

Political Resources: This option is incorrect.

Political resources do not have any impact on the factors of production. Political parties do not provide any type of assistance to produce the goods.

C.

Social responsiveness: This option is incorrect.

Social responsiveness means how society will react in different situations. The society will accept the product or not, it does not provide any type of assistance.

D.

National resources: This option is incorrect.

National resources are the type of resources that are for the whole country. All have equal rights on the national resources.

E.

Information resources: This option is correct.

Information resources are the type of resources that are necessary for now. The correct information and knowledge become important to deal with in the market and expect the number of goods to be sold. This is the correct option.

Learn more:

1. Learn more about goods production

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2. Learn more about GDP and taxes

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3. Learn more about market intermediary

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Answer details:

Grade: Middle School

Subject: Economics

Chapter: Factors of production

Keywords: