## 1.

1 The meaning and strecture of Production

**Production** consist of all those activites that provide the goods and services
to satisfy wants.

### Three process of production:

- · The **Primary stage** is also called the Extractive stage since it is carried
out by industries that extract the gifts of nature from the earth’s surface, from
beneath the earth’s surface, and from the seas and oceans. This stage includes
activities such as agriculture, farming, fishing, quarrying, mining, oil extraction
and the timber i
- \dustry.
- · The **Secondary stage** is also called the Manufacturing and Construction stage
since it processes the output of the Primary stage (raw materials) into finished
products . This stage includes activities such as building, engineering, and the
manufacture of cars, furniture, clothing, etc.
- · The **Tertiary stage** is also called the Services stage. This includes the
**distributive trades** such as wholesaling and retailing, the **commercial
trades** such as banking, communication, transport and insurance and **personal
services** such as education, hairdressing, law, administration, medical services
and so on.

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