In the context of economics, what is the primary role of entrepreneurs?

• A. They determine the monetary supply in the economy.
• B. They set government policies that regulate markets.
• C. They organize resources to create goods and services, driving innovation and economic growth.
• D. They provide labor for businesses as employees.

Answer: (C)

Verified step by step guidance

1. Understand the role of entrepreneurs in economics: Entrepreneurs are individuals who take the initiative to combine various resources such as land, labor, and capital to produce goods and services.
2. Recognize that entrepreneurs are distinct from other economic agents like laborers (who provide labor) and government policymakers (who set regulations).
3. Identify that entrepreneurs drive innovation by introducing new products, services, or methods of production, which can lead to economic growth.
4. Note that entrepreneurs bear the risks and uncertainties involved in starting and managing businesses, which is crucial for resource allocation in the economy.
5. Conclude that the primary role of entrepreneurs is to organize resources effectively to create goods and services, thereby fostering innovation and contributing to economic development.