(a) What is meant by production?
(b) Explain with examples, the following types of production
(i) Primary;
(ii) Secondary;
(iii) Tertiary.
Explanation
(a) Production; can be described as the creation of utility. It is any activity which results in the creation of goods and services and the distribution of these to the final consumers in order to satisfy human wants.
(b)(i)Primary production; forms the basis of further production. This refers to the extraction of raw materials in their natural form from land, sea and air. For example, products from agriculture, mining and fisheries are primary products.
(ii) Secondary production: Secondary production entails the conversion of basic raw materials or semi-completed commodities to their final forms that are acceptable to the consumers. Processed goods such as garri, clothes, houses are examples of products of secondary production.
(iii) Tertiary production: This is the third sector of production which includes commercial and professional services. All those who provide commercial services such as wholesalers, retailers and transporters are involved in tertiary production. These include persons who perform direct / professional services such as doctors, barbers, salesmen and lawyers