At this second stage of production, utility is added to the basic raw materials from primary production. Secondary Production : This is the processing and transformation of raw materials from primary production into finished goods. It includes amongst many others produce from agriculture such as animal husbandry, mining, quarrying, oil drilling, cola, crude oil etc. Primary Production: This is the first stage of production which is concerned with the extraction of raw materials from land, air and sea. That is the producer is not attempting to satisfy his own wants directly except to a very limited extent. Indirect Production: It is production by specialization for exchange.Direct Production: This is the creation of goods and services to satisfy household requirements It is a small scale production to meet family needs.Production is basically divided into two – Direct and Indirect Production. They can be utilized and priced according to value and volume. (b) Economic Goods: These are any goods that are useful or valuable and at the same time scarce in its available quantity and which command a price as people are prepared to pay to possess them. Production in economics is never complete until the goods and services produced gets to the final consumers. Its interest is in whether that thing is desired by someone who is prepared to pay for it. In effect, economics is not concerned with whether something is good or bad. All goods and services produced must possess utility, which means that they must be capable of satisfying certain human wants. Production may equally be defined as the creation of utility while utility is the ability of a commodity or service to satisfy human wants. That is, production is the making available of goods and services to those who are willing and able to pay for them for the satisfaction of their wants. Production in economics may be defined as the various economic activities aimed at the creation of goods and services and the distribution of these goods to the final consumers for the satisfaction of human wants. Production has diverse meaning, but the usage depends on the context in which it is used. Factors that Determine Volume of Production.Types (Primary, Secondary and Tertiary).
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