Production

Syllabus tag: KCSE | Business Studies | Form 1 | Topic 4 Production

Lesson objectives

By the end of this topic, you should be able to:

• Define production and describe the types of utility it creates.
• Distinguish direct from indirect production.
• Describe the three levels of production and their occupations.
• Describe the four factors of production, their rewards and characteristics.

Summary

Production is the creation of goods and services to satisfy wants, and it creates form, place, time and possession utility. It is direct — for one's own use — or indirect — for exchange. Its three levels are primary, secondary and tertiary, and its four factors are land, labour, capital and entrepreneurship, rewarded by rent, wages, interest and profit.