Kinds of factors of production:
Factors of production are widely categorized into primary and derived factors. Man (i.e., Labor) acts upon Nature (i.e., Land) to generate goods, services and wealth. These two factors (i.e., Land and Labor) are naturally provided and without them no goods can be formed. These are termed as primary factors.
Capital and organization are derived from prime factors of production, and are termed as derived factors of production. Such derived factors of production, whenever combined with the primary factors of production, increase net production.
According to the traditional categorization, there are four factors of production. They are Labor, Land, Capital & Organization.
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