Political Economy Theory identifies two resource types that influence survival.

• A. Only capital resources.
• B. Social capital and consumer goodwill.
• C. Legitimacy and power (political); Production (economic).
• D. Technological assets and data.

Answer: (C)

Political Economy Theory argues that an entity’s ability to survive and influence outcomes rests on two kinds of resources: political resources—legitimacy and power—and economic resources—production. Legitimacy provides authority and broad-based support, helping to secure cooperation and reduce resistance, while power enables the organization to mobilize others and marshal scarce resources when needed. Production, the capacity to generate goods or services and create wealth, supplies the material basis to fund activities, endure shocks, and invest for the future. Together, these resources shape how effectively an actor can sustain itself at the intersection of political influence and economic capability.

Other resource types miss this dual focus. Capital resources are economic but don’t inherently capture the political legitimacy and authority that enable action; social capital and consumer goodwill reflect relationships and perception but don’t align with the specific political-economic pairing emphasized here; technological assets and data are valuable modern tools but do not represent the two interconnected resource categories central to Political Economy Theory.