(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.

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

(i) Form utility,
(ii) Time utility and
(iii) Place utility

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

The entrepreneur is also called 'Organizer'. In, modem times, an entrepreneur is called 'the changing agent of the society'.

Merits of division of labour
(i) It improves efficiency of labour when labour repeats doing the same tasks.
(ii) Facilitates the use of machinery in production? resulting in inventions.
(iii) Time and Materials are put to the best and most efficient use.
Demerits of division of labour
(i) Repetition of the same task makes labour to feel that the work is monotonous and stale. It kills the humanity in him.
(ii) Narrow specialization reduces the possibility of labour to find alternative avenues of employment. This results in increased unemployment.
(iii) Reduce the growth of handicrafts and the worker loses the satisfaction of having made a commodity in full.

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.

Capital is man made physical goods used to produce other goods and services. In short, Capital means money.

Capital and Organisation.

Production and consumption

An Economy in which Private and Public sectors co-exist is a mixed economy.
Eg. India.