In a capitalist economy (option 1), the factors of production are owned individually. This means that individuals and private companies have ownership and control over resources such as land, labor, and capital. In a capitalist economy, the means of production are privately owned and operated for profit.

In a socialist economy (option 2), the factors of production are owned collectively by the state or the community as a whole. This means that resources are controlled and allocated by the government, and there is more emphasis on collective decision-making rather than individual ownership.

A mixed economy (option 3) is a combination of both capitalist and socialist elements. In a mixed economy, some factors of production may be privately owned, while others are owned by the state or the community.

Therefore, the correct answer is option 1, where the factors of production are owned individually in a capitalist economy.