Catherine works in a government agency focused on economic resource de

QUESTION

Catherine works in a government agency focused on economic resource development. Her current project is to develop strategies to reverse “brain drain.” This process has the strongest impact on which factor of production for a modern economy?

A) natural resources
B) capital
C) human resources
D) entrepreneurship
E) knowledge

ANSWER

Answer: E
Explanation: E) “Brain drain” is emigration of highly skilled intellectual and technical labor to other countries. While this impacts human resources, the loss of knowledge is more critical to modern, technology-driven economies.