Which of the following will be accomplished by efficient allocations of the factors of production?

Which of the following will be accomplished by efficient allocations of the factors of production?

a) guaranteeing economic success

b) understanding whether a product will fail

c) fulfilling many needs and wants of society

d) replenishment of limited resources

Answer: c) fulfilling many needs and wants of society

To achieve the overall objective of using the factors of production in their most productive way, it is indispensable to ensure their efficient distribution, which encompasses land, labour, capital, and entrepreneurship factors. These are resources allocated in a manner that enhances production within numerous fields and industries to bring about improved levels of satisfaction to cater to society’s demand and utilization. This efficiency helps to make sure that precious resources are not used in areas that will not give maximum returns. Nevertheless, balance can mean sensible economic development and welfare of a society at some level, but it does not equal economic success at all or overcoming all the restrictions from the side of resources. However, it wants to fully optimize the usage of resources to fulfil as many needs of society as it can rather quickly.