--- title: "Information is wealth and power" subject: "Technology, Environment and Society" chapter: 1 key: "semester_7/technology_environment_and_society:information-wealth-power" source: https://www.bctengineer.com/q/semester_7/technology_environment_and_society/information-wealth-power site: BCT Engineering --- # Information is wealth and power Technology, Environment and Society · Chapter 1: Technology - Asked in: 2072 Kartik, 5 marks - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/technology_environment_and_society/information-wealth-power - Whole chapter: https://www.bctengineer.com/md/semester_7/technology_environment_and_society/chapter-1 ## Question Elaborate the statement that "Information is wealth and power in modern society." ## Short answer Information creates wealth via knowledge-based firms, data monetization, and IP, and confers power by enabling better decisions, political influence, and citizen scrutiny. In the digital era, control of data is as valuable as physical capital, making education and ICT access key to prosperity and influence. ## Answer In the information age, **information and knowledge** have replaced land, labour and physical capital as the main source of wealth and power. Whoever has the right information at the right time can make better decisions, innovate and control markets and people. #### Information is wealth - **Knowledge-based companies are the richest:** Apple, Microsoft, Alphabet (Google), Amazon and Meta earn mainly from software, data, patents and platforms, not from land or heavy factories. - **Intellectual property:** patents, copyrights and software can be sold repeatedly at almost no extra cost. - **Data as an asset:** customer data is used for targeted advertising and product design; it is often called "the new oil". - **Skilled individuals:** a software engineer in Nepal can earn foreign income through outsourcing and freelancing with only a laptop and internet. - **Market information:** farmers who know market prices through mobile apps or SMS get better prices. #### Information is power - **Decision making:** governments and firms with accurate data plan better (e.g. weather forecasts for agriculture and disaster preparedness). - **Political power:** control of media and social media shapes public opinion and elections. - **Military and security power:** intelligence and cyber capabilities give nations advantage. - **Citizen power:** the Right to Information Act, 2064 (Nepal) and social media let citizens question authorities and expose corruption. - **Competitive advantage:** companies that ignore new information fail (Kodak with digital photography, Nokia with smartphones). #### Consequences - Countries that invest in education, research and digital infrastructure grow fast; those without access fall behind (digital divide). - Misuse of information (fake news, data theft) is also a source of harmful power. Hence, information is truly wealth and power in modern society, and education and ICT are the keys to development for countries like Nepal. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. In the information age, information and knowledge have replaced which as main source of wealth and power? A. Land, labour and physical capital B. Only gold C. Only oil D. Population Answer: A. Information is now the primary resource. (Key point: Information replaces traditional sources) 2. Why can intellectual property such as software generate great wealth? A. It needs a new factory per copy B. It can be sold repeatedly at almost no extra cost C. It cannot be copied D. It is owned by governments only Answer: B. Near-zero copy cost lets one product be sold to millions. (Key point: Information as wealth) 3. Which is an example of citizen power through information? A. Right to Information Act, 2064 B. Excavator use C. Land tax D. Wage labour Answer: A. RTI and social media let citizens question authorities and expose corruption. (Key point: Information as power) 4. Kodak and Nokia are used to show that: A. Companies ignoring new information fail B. Big firms never fail C. Hardware beats software D. Cameras are obsolete Answer: A. They failed to respond to digital photography and smartphones respectively. (Key point: Competitive advantage) ## Related in Technology, Environment and Society - [Industrial vs information age; information as wealth](https://www.bctengineer.com/question.md?key=semester_7%2Ftechnology_environment_and_society%3Aindustrial-vs-info-age-wealth) — Technology, Environment and Society, chapter 1, asked 2× - [Industrial society entering information society](https://www.bctengineer.com/question.md?key=semester_7%2Ftechnology_environment_and_society%3Aindustrial-to-info-society) — Technology, Environment and Society, chapter 3, asked 2× - [Civilization: agricultural, industrial, information society](https://www.bctengineer.com/question.md?key=semester_7%2Ftechnology_environment_and_society%3Aenlighten-civilization-societies) — Technology, Environment and Society, chapter 3 - [Agricultural society entering information society](https://www.bctengineer.com/question.md?key=semester_7%2Ftechnology_environment_and_society%3Aagricultural-to-info-society) — Technology, Environment and Society, chapter 3 - [Information replacing physical capital](https://www.bctengineer.com/question.md?key=semester_7%2Ftechnology_environment_and_society%3Ainfo-replaced-physical-capital) — Technology, Environment and Society, chapter 1 - [Resource mapping and wealth/poverty ranking](https://www.bctengineer.com/question.md?key=semester_7%2Ftechnology_environment_and_society%3Aresource-mapping-wealth-ranking) — Technology, Environment and Society, chapter 2 ## Related in other subjects - [Role of electrical energy in modern society](https://www.bctengineer.com/question.md?key=semester_7%2Futilization_of_electrical_energy%3Arole-electrical-energy-modern-society) — Utilization of Electrical Energy, chapter 1 - [Power electronics in modern power systems](https://www.bctengineer.com/question.md?key=semester_8%2Fhigh_voltage_engineering%3Apower-electronics-modern-power-systems) — High Voltage Engineering, chapter 1 - [LTI system and closed loop in modern systems](https://www.bctengineer.com/question.md?key=semester_3%2Fcontrol_systems%3Alti-define-cl-pronounced) — Control Systems, chapter 1 - [FACTS devices changing the power system](https://www.bctengineer.com/question.md?key=semester_8%2Fhigh_voltage_engineering%3Afacts-changes-power-system) — High Voltage Engineering, chapter 1