Basic factors of production in the economy include which of the following?

Question

Flour, eggs, and sugar.

Telephones and computers.

Capital.

Lumber, nails and roof shingles.

Answer 1

The basic factors of production in the economy typically include:

1. Land: This refers to natural resources used in the production process, which would include materials like lumber.
2. Labor: This encompasses the human effort that goes into the production of goods and services.
3. Capital: This refers to the tools, machinery, and buildings used in the production process.

From your list, "Capital" is explicitly mentioned, making it one of the factors of production.

The other items listed (flour, eggs, sugar; telephones and computers; lumber, nails, and roof shingles) are all goods that can be produced using the factors of production but are not considered the factors themselves.

So, the answer is Capital.