The diagram shows the role of entrepreneurs in a market economy. Entrepreneurs are important in a market economy because they

Assessment: Economics 0455 | Paper 1 Mock 01 | Multiple Choice Subject: Economics - 0455

Question 1 Report

econ-topup1-entrepreneur-growth

The diagram shows the role of entrepreneurs in a market economy. Entrepreneurs are important in a market economy because they

Answer Details

Entrepreneurs are central to a market economy. They identify gaps in the market, take risks by investing capital, and organise land, labour and capital to produce goods and services. Their pursuit of profit drives innovation and ensures resources flow to their most valued uses. Unlike a planned economy, no government direction is needed.

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