Economics SSS1 First Term

WEEK 7

Theory of production - Production

Performance Objectives

Student should be able to:

1. Explain the concept/ factor of production
2. Explain the types of production.
3. State and explain the characteristics of each factor of production.

Content

Meaning of production

Production may be defined as the various economics activities aimed at the creation of goods and services and the distribution of these to the final consumers for the satisfaction of human wants. Production has to do with the creation of tangible goods such as cars, tv sets, tables etc as well as services rendered by some professionals such as doctors, teachers, lawyers, soldiers, police and hairdressers.

Types of Goods    

Goods and services can be classified into two major categories. These are;