Question

What do you understand by the term production? Explain all of them.

Answer 1

Answer:

Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output). It is the act of creating an output, a good or service which has value and contributes to the utility of individuals. ... public production.

Explanation:

Answer 2

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What is production:-

✔Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output).

✔It is the act of creating an output, a good or service which has value and contributes to the utility of individuals.

• Definition of Production:

»According to Bates and Parkinson:

“Production is the organised activity of transforming resources into finished products in the form of goods and services; the objective of production is to satisfy the demand for such transformed resources”.

•Three Types of Production:

»Three Types of Production:

(For general purposes, it is necessary to classify production into three main groups:)

1. Primary Production:

✔Primary production is carried out by ‘extractive’ industries like agriculture, forestry, fishing, mining and oil extraction. These industries are engaged in such activities as extracting the gifts of Nature from the earth’s surface, from beneath the earth’s surface and from the oceans.

2. Secondary Production:

✔This includes production in manufacturing industry, viz., turning out semi-finished and finished goods from raw materials and intermediate goods— conversion of flour into bread or iron ore into finished steel. They are generally described as manufacturing and construction industries, such as the manufacture of cars, furnishing, clothing and chemicals, as also engineering and building.

3. Tertiary Production:

✔Industries in the tertiary sector produce all those services which enable the finished goods to be put in the hands of consumers. In fact, these services are supplied to the firms in all types of industry and directly to consumers. Examples cover distributive traders, banking, insurance, transport and communications. Government services, such as law, administration, education, health and defence, are also included.