Meaning / Definition

Meaning of production

Production can be defined as the conversion of raw materials into finished or semi-finished goods to satisfy human wants. It is the creation of utilities.

Definition of a good

A good is anything offered for sale, for acceptance, and for acquisition.

1.Consumer Goods: These are goods and services which are ready for use by final consumers, e.g biros, shirts, the services of a doctor.

2.Producer/Capital Goods: These are goods and services which are used to produce other goods and services, e.g Lorries, factory buildings, etc.