Stages of Production, their examples and what they entail.
The economic activities involved in production are so vast that production is divided into three broad categories which are;
- Primary Production: this type of production involves the extractive industry where the occupation of people is directed to the process of extracting raw materials form the soil or sea. The goods and services produced at this first stage of production are known as raw materials. Examples of this kind of production are farming, fishing, mining, quarrying,etc
- Secondary Production: this is a stage where the raw materials extracted from the soil and sea are processed and transformed into finished goods. That is, utility is added to the raw materials of the primary production. The manufacturing and constructive industries are involved in this stage of production.
- Tertiary Production: this is the stage of production where the goods and services produced at the above two stages are taken to those who need them. This stage completes the production processes since production is not complete until the goods and services produced reach the final consumers. Example of this includes distribution, communication, banking, insurance, tourism, teaching, legal services, etc.
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