(i) Physical Capital or Material Resources, Ex. Machinery, tools, buildings, etc.
(ii) Money capital or Monetary Resources, Ex. Bank deposits, shares and securities, etc.
(iii) Human capital or Human Resources Ex. Investments in education, training and health.

Division of labour means dividing the process of production into distinct and several component processes and assigning each component in the hands of a labour or a set of labourers, who are specialists in that particular process.

Alfred Marshall defines labour as; 'the use of body or mind, partly or wholly, with a view to secure an income apart from the pleasure derived from the work'.

The factors of production
(i) Land
(ii) Labour
(iii) Capital
(iv) Organization

There are three types of production
(i) Primary production
(ii) Secondary Production
(iii) Tertiary or Service Production

Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption (the output).

Land as a factor of production refers to all those natural resources or gifts of nature which are provided free to man.
Characteristics of Land :
(i) Land is a Free Gift of Nature
(ii) Land is fixed in supply
(iii) Land is imperishable
(iv) Land is a Primary Factor of Production
(v) Land is Immovable
(vi) Land has some Original Indestructible Powers
(vii) Land Differs in Fertility

There are three types of production
1. Primary production
2. Secondary Production
3. Tertiary or Service Production
1. Primary Production:
(i) Primary production is carried out by 'extractive' industries like agriculture, forestry, fishing, mining and oil extraction
(ii) These industries are engaged in such activities as extracting the gifts of nature from the earth's surface, from beneath the earth's surface and from the oceans.
2. Secondary Production:
(i) This includes production in manufacturing industry, turning out semi-finished and finished goods from raw materials and intermediate goods, conversion of flour into bread or iron ore into finished steel.
(ii) They are described as manufacturing and construction industries.
(iii) Such as the manufacture of cars, furnishing, clothing and chemicals, as also engineering and building.
3. Tertiary Production:
(i) Industries in the tertiary sector produce all those services which enable the finished goods to be put in the hands of consumers.
(ii) These services are supplied to the firms in all types of industry and directly to consumers.
(iii) cover distributive traders, banking, insurance, transport and communications. Government services, such as law, administration, education, health and defence, are also included.