Question

A farmer uses a piece of land to grow crops, hires workers to help with planting and harvesting, and invests in machinery to improve productivity.
Which factor of production is most directly responsible for combining the other resources to generate profit?


Land


Entrepreneur


Labor


Capital

Answer 1

The factor of production most directly responsible for combining the other resources (land, labor, and capital) to generate profit is the **Entrepreneur**. The entrepreneur is the one who organizes and manages the other factors of production, taking on the risks and responsibilities associated with running the business to generate profit.