Production of Goods and Services Notes, Quizzes & Revision
📘 Revision Notes • 📝 Quizzes • 📄 Past Papers available in app
Production refers to the creation of goods and services to satisfy consumer needs and wants.
Production involves transforming raw materials into finished goods and transporting the goods to reach the consumer.
The final product becomes more useful when the consumer uses it. Therefore the goods and services produced must have utility to the user.
Utility refer to the ability of goods or services to satisfy human needs or wants.
Importance of production
- It makes use of the available resources to make goods and services
- It creates employment opportunities
- It provides goods and services required to satisfy human needs and wants
- It improves trade in a country. This contribute to the economy of the country