PRODUCTION

CONTENT

1. Meaning of Production
2. Classification of Production
3. The Factors of Production
4. The Importance of Production

Meaning of Production

The term production refers to the creation of goods and services to satisfy human wants. Production also means the transformation of raw materials into finished goods and their distribution to the consumer to satisfy human wants. It can also be referred to as the creation of utility. Production is not complete until the goods and services get to the final consumer. All goods and services must possess utility, which that they must be capable of satisfying certain human wants.

EVALUATION

1. (a) What is production?

(b) With the aid of a diagram show the classification of production.

Classification of Production (Stages or Types of Production)

Production is grouped into two major categories. These are direct and indirect production.

(a) Direct Production

Direct Production is the type of production in which an individual produces goods and services only for the family’s use or consumption.