13/04/2023 Ibironke Sonuga Economics Year 10 (2010/2011)

PRODUCTION

13/04/2023 Ibironke Sonuga Economics Year 10 (2010/2011)

OBJECTIVESDefine ProductionList and Explain the types and

Stages of production.List and explain the types of

goods.Explain the objectives of

businesses

13/04/2023 Ibironke Sonuga Economics Year 10 (2010/2011)

A car production plant.

13/04/2023 Ibironke Sonuga Economics Year 10 (2010/2011)

MEANINGProduction is the creation of goods

and services for the satisfaction of human wants.

Examples of production includes; a baker using flour, yeast, salt, and water to make bread.

A large computer manufacturer like DELL using people to assemble components in a factory to make laptop computers.

13/04/2023 Ibironke Sonuga Economics Year 10 (2010/2011)

A taxi driver using a car to transport a family from their home to an airport.

All these involve the use of resource called FACTORS OF PRODUCTION.

The AIM of production is to satisfy human wants.

By using resources to produce output, productive activity adds value to resources.

13/04/2023 Ibironke Sonuga Economics Year 10 (2010/2011)

ProductivityProductivity refers to the amount

of output that can be produced from a given input of resources combined in specific units.

13/04/2023 Ibironke Sonuga Economics Year 10 (2010/2011)

Stages of production.Primary; involves extraction of

raw materials from the earth. Examples includes mining, quarrying, farming, forestry fishery etc.

Secondary; involves manufacturing

Tertiary; refers to professional services such as accountings and medical care etc

13/04/2023 Ibironke Sonuga Economics Year 10 (2010/2011)

Every product that get into the hand of the consumer must have passed through each of these stages of production. E.g......

13/04/2023 Ibironke Sonuga Economics Year 10 (2010/2011)

Types of goodsGoods are classified are

consumer goods and producer goods.

13/04/2023 Ibironke Sonuga Economics Year 10 (2010/2011)

Objectives of ProducersThe main aim is Profits. This is

what is left from revenue after all cost have been deducted. Loss is made when a firm is unable to cover costs.

Other objectives are• Providing public service• Providing Charity• Non- Profit making Organization