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
- 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
- Involves transformation of raw materials into finished products or more useful products including; manufacturing e.g. food processing, Construction e.g. house and roads
- Involves provision of services. Divided into commercial and direct
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.