Production Concepts and Types

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@OptimisticScandium2960

Study Notes

Production

Production is an activity aimed at creating goods and services
It involves increasing, enhancing, and developing the usefulness of goods and services to better serve human needs.

Goals of Production

Satisfy the needs of society for goods and services
Replace worn-out or damaged items
Meet international market demands
Boost economic prosperity

Types of Production Based on Output

Production of goods: includes tangible items like bread, cakes, clothes, bags, and shoes.
Provision of services: includes intangible activities like medical care, transportation, and laundry services.

Types of Production Based on Level

Primary sector: involves extractive and agricultural activities such as mining, oil drilling, farming, and livestock raising.
Secondary sector: involves industrial and craft production such as manufacturing vehicles, clothing, and furniture.
Tertiary sector: involves trade and services such as retail, banking, and transportation.

Types of Production Based on Form

Chemical production: involves creating chemical substances like medicines and pesticides.
Transformation production: involves changing the physical form of materials, such as garment manufacturing and furniture construction.
Assembly production: involves combining different components to create a whole product, such as assembling cars and electronics.
Service production: involves providing a service, such as transportation and entertainment.

Distribution

Distribution is the process of moving goods and services from producers to consumers.
It aims to increase efficiency and value for both producers and consumers.

Producer Benefits of Distribution

Easier access to wider markets
Easier interaction with numerous retailers/consumers
Quality control
Increasing sales

Consumer Benefits of Distribution

Easier access to products
Convenient products at lower prices.

Description

This quiz covers the fundamental concepts of production, its goals, and the various types based on output and sector levels. Explore how production fulfills societal needs and boosts economic growth through tangible goods and intangible services.