Question

Jean- Baptiste Say argued that entrepreneurs should be called the fourth factor of production because they
A) organize the other factors
B) have historically been successful
C) are motivated by the desire to make a profit
D) can over come scarcity by making new choices

Answer 1

The correct answer is A) entrepreneurs organize the other factors, which are land, labor, and capital. The basic premise is that having land, labor, and capital, without someone pushing to develop a new product or service out of it, does not result in production per se.