Which of the following best describes the role entrepreneurs play in the economy?

• A. They supply raw materials for manufacturing.
• B. They regulate market prices through government intervention.
• C. They provide only financial capital for production.
• D. They combine land, labor, and capital to create new goods and services.

Answer: (D)

Verified step by step guidance

1. Understand the role of entrepreneurs in the economy: Entrepreneurs are individuals who organize and combine the factors of production—land, labor, and capital—to create new goods and services.
2. Recognize that entrepreneurs do not primarily supply raw materials; raw materials are typically provided by suppliers or landowners.
3. Note that entrepreneurs do not regulate market prices through government intervention; price regulation is usually a function of government or market forces.
4. Understand that entrepreneurs provide more than just financial capital; they also take risks, innovate, and coordinate resources to bring products or services to market.
5. Conclude that the best description of entrepreneurs' role is that they combine land, labor, and capital to create new goods and services, driving economic growth and innovation.