(a) What is production?
(b) Explain the different activities involved in industrial, commercial and service occupations.
Explanation
(a) Production; is the transformation of raw materials into finished goods and distribution to the final consumers to satisfy their wants. It involves the making of goods and services available to satisfy human wants. Production can also be defined as the creation of utility.
(b) The different activities involved in industrial, commercial and services occupations are:
Industrial occupation: These are concerned with obtaining the raw materials and changing them into finished goods. Industry is usually divided into three groups namely extractive, manufacturing and constructive industries.
(i) Extractive industry is basically concerned with the production of food items for immediate consumption and raw materials to feed the manufacturing industries.
(ii) Manufacturing industry; is engaged in utilizing the products of the extractive industry to produce finished goods like shoes, clothes, books, etc.
(iii) Constructive industry; engages in the building of roads, bridges, houses etc out of finished products like cement, iron rods, etc. Commercial occupation: They are concerned with the act of buying and selling of goods and services which directly or indirectly assist trade. These services (i.e transport, warehousing, banking, insurance, advertising etc) are sometimes referred to as aids to trade.
These are:
(i) Advertising brings the existence of the goods to the awareness of the consumer.
(ii) Banking provides credit facilities for the purchase and payment of goods.
(iii) Transportation ensures the movement of traders, goods and services from one place to another by land, air and sea.
(iv) Warehousing helps in storing and preserving the goods until they are needed.
(v) Insurance aids trade by spreading the risks which the trader would otherwise face alone. Service occupation: They render personal and direct services to people who pay for such services. Their efforts constitute services that are salable to consumers who pay for them directly or indirectly. It can be divided into direct and indirect services.
(i) Direct services; are rendered directly to those who employ them and pay for them directly, e.g housemaids.
(ii) Indirect services; are usually not paid for by members of the public directly but by the government out of the taxes realised from them. Those in this category are policemen, soldiers, etc.