Question

Which statement is false?

1) Land is the primary factor of production used in the production of all goods and services.
2) An entrepreneur combines all the factors of production.

Answer 1

The false statement is: 2) An entrepreneur combines all the factors of production.

Step-by-step explanation:

The false statement is: 2) An entrepreneur combines all the factors of production.

While entrepreneurs play a key role in a market economy by organizing factors of production, they do not combine all the factors themselves. In fact, entrepreneurs combine labor, capital, and land to create goods and services, but they themselves are not the factors of production.

For example, an entrepreneur may hire workers (labor) and purchase machinery (capital) to utilize a piece of land for farming. In this case, the entrepreneur is organizing and coordinating the factors of production, but the factors themselves remain separate.