My question is this...

Suppose you have an svg file of a beach...which includes sand, a palm tree, and the ocean. Is there a way to separate each element so I can create layers to cut out. I am using a cricut machine to cut my svg files and I don't know how to make layers of a file...so all my files are cut as a single cut instead of different layers. Does that make sense?

I am not sure what you are asking : svg does not include Layers. So if you have to export it to another program using normal svg, the Layers will be lost. Inkscape though, can make, save and use layers, so if the CriCut machine is 'printing' (well, cutting) directly from Inkscape, there should not be a problem.
To make a new Layer, go to the "Layer" dialog, "add Layer" (or Shift+Strg+N). Now, on the bottom of the Inkscape Window you see on which Layer you are, currently. Click on the eye to see/hide what is on the activated Layer. Switch Layers to the one containing your beach scene. Mark everything belonging to the 'sand', Ctrl+X to extract it, Switch to the new Layer, Ctr+V to insert it. Then make a new layer, and repeat the procedure for the palms, or whatever.

If you already have layers in your drawing, there's another way to move objects from one layer to another, which I think is easier to do:

First type CTRL+SHIFT+L to get an overview of all layers.

Then go to the layer that contains the objects you want to move.

Next use to select the object(s) to move

Finally press SHIFT+PgUp or SHIFT+PgDn until the object has arrived at the required layer