Theory question 103
Theory of ProductionSection B: answer three questions only from this section.
(a) What is meant by production? (b) Explain with examples, the following types of production: (i) Primary (ii) Secondary (iii) Tertiary
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(a) Production is the creation of goods and services (utility) to satisfy human wants; it is complete only when goods reach the final consumer
(b)(i) Primary production: extracting natural resources from land, sea or air, e.g. farming, fishing, mining, lumbering, hunting
(ii) Secondary production: changing raw materials into finished or semi-finished goods, e.g. manufacturing (textiles, cement), construction, refining
(iii) Tertiary production: providing services, both commercial (trade, banking, insurance, transport, advertising) and direct/personal services (teachers, doctors, lawyers, police)
Define production, then give a definition and two examples for each type.