TYPES OF PRODUCTION

PRODUCTION It’s the creation of goods or provision of services to satisfy human wants

It involves activities of transforming of materials into finished goods, transportation and storage

Types of production                                                         

Direct and Indirect Production

Direct production (subsistence production)

Is type of production from ones own personal consumption

Characteristics of Direct Production

• Goods and services are of low quality and quantity
• Leads to low standards of living.
• Encourages  individualism
• Can  very tiring
• Does not encourage invention and innovation
• No one has the ability to provide all that he/she requires

b) Indirect production

Production of goods and services for sale

Characteristics of Indirect Production

• Lead high quality and quantity goods.
• Production with a view of exchange.
• It results in surplus production of goods and services

Level of Production and Related Occupation

Primary Level

• This level is also called extractive level, involves extraction of goods from their natural setting.
• The products can be used in the state they are or can be processed to make them more useful. example water, mining, fishing. Lumbering e.t.c

Secondary Level

• Involves transformation of raw materials into finished products or more useful products including; manufacturing e.g. food processing, Construction e.g. house and roads

Tertiary Level

• Involves provision of services. Divided into commercial and direct

Commercial services

Activities either trade or consist trade to take place e.g wholeselling,retailing,banking .

Direct Personal Service

Service rendered by individual direct to the consumer e.g nursing teaching and legal service.

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