(a) What is meant by production? (b) Explain with examples, the following types of production (i) Primary; (ii) Secondary; (iii) Tertiary.

Answer Details

(a) Production is any human activity, aided by the factors of production, that creates or adds to the value of goods and services in order to satisfy human wants. It covers not only making goods but also the services that move goods to consumers and provide direct satisfaction. Production is complete only when the good or service reaches the final consumer.

(b) Types of production:

• (i) Primary production: the extractive stage, which obtains raw materials directly from nature. Examples: farming, fishing, mining, lumbering and hunting.
• (ii) Secondary production: the manufacturing and construction stage, which processes the raw materials from primary production into finished or semi-finished goods. Examples: making garri from cassava, refining crude oil, building houses and assembling cars.
• (iii) Tertiary production: the provision of services rather than goods. It includes commercial services that aid trade (transport, banking, insurance, wholesaling and retailing) and direct/personal services (teaching, nursing, the work of lawyers and hairdressers).

The three stages are linked: primary supplies raw materials to secondary, and tertiary provides the services that distribute the goods and support the whole process.