Question

Meg and her mother are opening a cupcake shop. They buy an oven, a walk-in cooler, and a decorating table. In terms of factors of production, what are these items?

Capital
Entrepreneurship
Land
Labor

Answer 1

Capital

Explanation:

This is considered capital because they are investing and trying to make a profit out of it.

Answer 2

The correct answer is Capital

Entrepreneurship is their business, the land and labor are not it. In here, it is capital because it is their investment that is supposed to pay off and bring them more money.