Question

Entrepreneurs initiate and sustain the process of economic development in which of the following ways?

• A. Capital formation
• B. Improvement in per capita income
• C. Generation of employment
• D. All of the above

Answer 1

Answer: (D)

All of the above

All the above mentioned functions are performed by an entrepreneur which lead to economic development. He makes investment in the firm, which leads to rise in capital formation in the economy. This in turn generates employment opportunities and increased production goods and services, further, income is earned by people employed and profit is generated. This improves the per capita income in the income, which will further increase capital formation, and hence, sustain the process of economic development.