How to get the 741 op amp to work as a linear amplifier?
5V is not enough for the LM741 to work properly. It needs a minimum of +/-5V 

Also the input common mode range does not include the negative rail, so the inputs are not going to be functional. 

The output can typically swing okay to +2 with a light load (though 667 ohms is not a very light load if the voltages get higher), so at least that part is okay (at room temperature). 

You could plop down a different op-amp and it would work more-or-less as you intended, but this way you are learning something. Many very useful modern op-amps have limited input common mode range, and you should always pay attention to datasheet power supply limits (and output swing and loading guarantees). 



Give it +/-5V supplies and it should work properly, but it would be better to increase the feedback resistors to somewhere in the 10K range. 

To stay within datasheet guaranteed numbers, as a pro would normally seek to do, increase the supply to +/-10V and make sure the load resistance is at least 2K (including the loading of the feedback network). That should guarantee a +/-5V output range over the full temperature range of the chip.