2. Productions means to provide goods and
service to satisfy the human needs and
wants.
Needs it is the essential thing and the most
important things to live in this world. These
are limited.
Examples----cloth, food, and water
Want—wants are unlimited. That gives us a
fashionable life to live.
E.g. ---car, motorbike, fridge and computer
5. The chain of production is the
various stages through which the
production of goods passes to
reach consumer.
It is not only the industrial
production but also the commercial
service necessary to link production
to the consumer.
6. Added value is the difference
between the value of a firm's output
and the materials and service bought
to create it.
Added value=selling price-bought
materials and service
7. Which of the following is a service and which is a good..
Fixing a car---service
Filling a tooth—service
Clay pot—goods
Serving a meal- service
Teaching the children—service
Guarding a prisoner—service
Packet of biscuit—goods
Cooking oils—goods
Decorating a house—service
Pet food—good
Reading news or TV—service
A set of chairs—good
Today’s newspaper—goods
Washing soap—goods
A bag of maize—goods
8. Using examples distinguish between
the primary and secondary industry
Primary--it done by getting the raw
materials from the nature .
e.g. wood to prepare a table.
Secondary--this is where the ingredient
items are use to make the things—e.g.
wood is made as table.
9. The figure given below show a chain
of production for clothing.
Cotton farmer—clothing manufacturer –x- retailer- consumer
1)Identify x in this chain of production?
Wholesaler
2)Identify the primary producer?
Cotton farmer
10. Define
Manufacturer the person who buy
things from producer and produces
good is manufacturer.
Consumer-the person who gets the
good and service is consumer.
11. • Production may divide into
• Extractive industry and manufacturing industry
• Manufacturing industry and commerce
• Industry, commerce and direct service
• Manufacturing industries and constructing indu
