Which of the following types of business is NOT considered a producer in economics?

• A. Farm
• B. Manufacturing firm
• C. Retail store
• D. Bank

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the definition of a producer in economics. A producer is an entity that creates goods or services by combining inputs such as labor, capital, and raw materials.
2. Step 2: Analyze each option to determine if it produces goods or services. A farm produces agricultural goods, so it is a producer.
3. Step 3: A manufacturing firm transforms raw materials into finished products, so it is also a producer.
4. Step 4: A retail store sells goods to consumers but does not create or produce the goods themselves; it acts as an intermediary in the distribution process.
5. Step 5: A bank primarily provides financial services such as loans and deposits but does not produce tangible goods or directly create services in the production sense, so it is not considered a producer in economics.