Successful entrepreneurs contribute to the economy by:

• A. reducing competition in all markets
• B. creating jobs and fostering innovation
• C. eliminating the need for government intervention
• D. decreasing the overall level of production

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the role of entrepreneurs in the economy. Entrepreneurs are individuals who start and manage businesses, taking on financial risks in the hope of profit.
2. Step 2: Recognize that successful entrepreneurs typically contribute by creating new products, services, or processes, which often leads to innovation.
3. Step 3: Consider how entrepreneurship affects employment. By starting and expanding businesses, entrepreneurs create new job opportunities, which helps reduce unemployment.
4. Step 4: Analyze the impact on competition. Rather than reducing competition, entrepreneurs often increase it by introducing new ideas and businesses, which can lead to more choices for consumers.
5. Step 5: Conclude that the main contributions of successful entrepreneurs are fostering innovation and creating jobs, rather than eliminating government intervention or decreasing production.