00:10 Good day students, my name is Achusim Blesing, I'm your business studies teacher.

00:22 The topic for today is production.

00:28 But by the end of this, let us look at the objectives of this lesson.

00:33 At the end of this class, the students should be able to define production,

00:39 mention types of production, give examples of extractive production,

00:46 differentiate between direct and indirect services, give examples of direct services,

00:54 list factors of production, and outline reward for each factor of production.

01:04 All right, let's go on now with the definition.

01:07 Okay, production, what is production?

01:12 Production is the making of goods and the provision of services that satisfy the needs of people.

01:22 Making of goods and provision of services to satisfy the needs of people.

01:30 Okay, also we can say that production is a process by which raw materials are

01:38 changed or transformed into filling goods to satisfy human needs.

01:46 Okay, these two definitions are okay, right?

01:51 And production involved creation of goods and services to satisfy human needs.

01:57 These are another definition of production.

02:01 Production cannot be complete, which are getting to the last stage of what we call the final stage,

02:11 which is called consumers.

02:14 Okay, production is incomplete because as services produce,

02:17 you know which those who desire for them and who are those people, the consumers.

02:24 All right, let's just now look at the definition, I mean,

02:27 division of production, a bigger pattern, the definition of the division of production.

02:35 Production is being divided into two goods or raw material and services.

02:43 Like we said that production is getting those raw materials into finished goods

02:52 and some of the services that has to be provided to make our things to be equal, right?

03:00 We have types of production, types of production.

03:06 One is called primary production.

03:10 We have secondary production, we have teshire production.

03:16 Let me repeat it again, we have primary production, secondary production.

03:22 And we also have teshire production.

03:24 We have the last stage we call podnary water production.

03:28 We are going to look at them one after the order.

03:33 The first one is primary production.

03:37 This is the early stage of production that involves the extraction of raw materials

03:45 from the soil, not just soil from the sea, beneath the earth.

03:51 Okay, from the forest too, which is used for the production of goods.

03:57 Extraction of raw materials from the soil, sea, forest and diabetes to produce goods.

04:07 Okay, people that involved in the primary production are farmers, miners, fishermen,

04:16 farmers and so on and so forth.

04:21 So the primary production can also be classified as extractive production, extractive production.

04:32 Okay, we have a secondary stage of production, which we call, I mean,

04:38 which means those raw materials extracted have been processed into finished goods

04:45 or have been changed or transformed into finished goods.

04:49 It involved manufacturing industry and constructive industry.

04:56 Some of these people engage in making those goods available.

05:01 Okay, we have the third stage of production, which we call teshire production.

05:09 It concerns with rendering of services.

05:13 This one is aspect of services, potentially a stage of production involved distributing

05:19 those goods to the final consumer.

05:22 The people involved in this production, stage of production are the whole cellars

05:28 to retell us the transport time.

05:32 All right, we have the last stage of production, which we call the quaternary production,

05:37 which is based on services also.

05:41 Well, not just services, services for like intellectual services

05:48 or research development and information.

05:51 In other words, we call it information and communication technology.

05:57 Anyone that, yeah.

06:01 So, yeah, natural.

06:04 Okay, we have forms of production, forms of production.

06:11 Not just forms, we have forms of industrial production.

06:16 Okay, let us look at teeth with this diagram, forms of industrial production.

06:23 All right, extractive manufacturing and construction.

06:31 Extractive and aspect of primary production.

06:36 Manufacturing and construction and aspect of secondary production.

06:42 Extractive is under primary production.

06:46 Why manufacturing and construction is under secondary world production?

06:53 Let us look at extractive production or the extractive industry as we call it.

07:00 This is the primal sector. It involves extraction of raw materials. Okay? From the natural

07:09 depot or natural resources from the ground. Some of the things you can extract at this level

07:17 are like robbers. We have robbers, we have cocoa, we have timber, we have coal, we have crude,

07:25 oil, we have iron, we have oil, we have gases and so on and so forth. Okay? These all

07:33 things are what we can get at this level of production. Then we have manufacturing industry,

07:42 which is the secondary level of production. We have, by those raw materials are being converted

07:50 into finished products. Okay? Then we have goods like a robber can be converted to tired,

07:59 can be converted to raincoats, robber buckets and cocoa can be converted to beef

08:07 rages, like bonpita, milo chocolate, things that can also be converted to plants,

08:14 applied boats. So this is the second stage, which we call manufacturing, or we call it secondary

08:24 level of production. Constructive industry is also under secondary level. At this stage or at

08:32 this type of production, those industries are concerned with the construction of activity,

08:39 the industry is also under secondary level. At this stage or at this type of production,

08:47 those industries are concerned with the construction of activities like the build,

08:52 bridges, the agricultural production is production of services. Okay?

09:01 You may not only see the activities physically, but the services are there. Okay? And without those

09:07 services, those goods can not get to the consumers. Okay? And people that can engage in this kind of

09:16 services, we can also divide them into three direct services, an environment to have commercial,

09:22 direct services are those ones who give you direct service and pay for the services given to you.

09:31 All right? In direct, those ones that can be given to the public, commercial service are those

09:38 people who have to send those goods to where they are needed. Like the traders, the bankers,

09:45 the transporters, they are under this service. The traders, the bankers, the transporters,

09:52 they are under this service. This is just a definition of the division of services. We have

10:01 direct, we have indirect and we have commercial. All right? So we have really like cook actors,

10:09 house health, still work actors, house health, still work and so on and so forth. We also have people

10:18 like the judges, the educationists, ambassadors, soldiers, policemen and so on and so forth. Right?

10:28 We also have people who involve in commercial services, these then tells the distribution

10:36 and exchange of manufactured products from the manufactured, from the manufacturer to the consumer,

10:48 to get to the consumers. There must be people who must do that. As some of the roots taking

10:57 to get those goods to be consumers are either by air, by water or by road, okay? And before those

11:07 goods will be able to get to the consumer, it may be stored in our warehouse, okay?

11:14 Until those goods are being needed. And also we have other services like banking, banking services

11:22 have in getting our money or financial aspect of that business to be secure or to be safeguarded.

11:30 All right? We also have insurance to make sure that the risk that may involve in short business

11:38 are being reduced. We also have insurance to make sure that the risk that may involve in short

11:44 business are being reduced. We also have the transport services fed of production on environment

11:53 or society. Let us see, you can equally say the importance of production in our society.

12:01 One is this, it provides employment for workers in our society. With the help of production,

12:11 a lot of people are being employed, okay? Second part, it makes it possible for goods to be produced.

12:19 Without all this production would have gotten something to lay our hands on. But with the possibility of

12:29 production, we can get goods for our own personal consumption. There will also be an

12:36 abnormal raw material to be converted to finished product, okay? Production makes it possible

12:42 for those raw materials to be able to get to that position where one can be able to use them.

12:50 It brings opportunities to customers to have variety, right? Of goods to buy in the market.

12:58 With the aid of production, we have different kinds of products in the market for our own consumption.

13:05 Then is sometimes the issue of pollution? If that could be positive, if that can also be negative.

13:14 Okay, most times, some of those areas that engage in digging the ground or mining can also lead to

13:24 erosion and pollution in our society. It improved the standard of living of the people. Of course,

13:31 with aid of production, our standard of living is improved day by day. It helps to develop the

13:39 society where it is located. Of course, some of the factories that are being located at strategic

13:47 places are eventually developed at an area where the companies are being located, right?

13:56 Now let us now look at factors of production. These are things that makes it possible for

14:04 production to be a reality, right? We have four factors of production. We have four factors

14:13 of production. Namely, land, labor, capital and entrepreneur. Land, labor, capital and world

14:24 entrepreneur. Let us look at land. Land is one of the most important factors of production because

14:34 without land, you cannot be able to make production, all right? Land is a free gift of nature.

14:45 Land is fixed and immobile. Meaning, it cannot move from one place to another, all right?

14:54 The reward for land is rent. Please, on the land is, I want you to on the land is, the reward for land

15:05 is what rent, okay? Let's go to labor. Labor is a physical and mental effort of man in the

15:16 production process. Labor is a physical and mental effort of man in the production process.

15:28 Without labor, every other factor cannot work. We have three types of labor, we have skilled,

15:37 we have semi-skilled and we have our skilled. Our repeat, we have skilled, semi-skilled and our skilled.

15:49 Okay? Reward for labor is salary or wages. Let us look at those classification of labor.

15:58 Skilled, labor consists of people who have their requisite. The requirements are

16:07 gotten, the required training and the aspect for the job they are performing. Okay? Example,

16:14 doctors, engineers are content. People who are special, they are gotten a professional knowledge

16:22 on the subject or skill or whatever they are displaying. We have semi-skilled labor. These people

16:30 have not gotten a level of training, but they are gotten to certain level of what they are doing.

16:38 Example, electricians, technicians, electricians, technicians are getting this. These are

16:46 good example of them. Semi-skilled. We have skilled labor, semi-skilled and our skilled labor

16:54 are those ones who does not need any training for whatever they would do. Like the get men,

17:02 cocaine, the gardener, the house health, they do not need any training for that particular job.

17:10 We also have another factor of production which we call capital. Capital is the money used in

17:15 starting a business. Capital is the money used in starting a business. Capital is not limited to

17:22 money alone, but also to money things which are used to produce goods and services. Money used

17:29 to start your business. It's regarded to be capital. Not just that, you have beauty,

17:35 machinery, equipment. All these things are being included as capital. Then we have reward for

17:43 capital as interest. The reward for capital is world interest. Right, we have the entrepreneur.

17:52 The entrepreneur is the owner of the business. He organizes, coordinates and controls the

17:59 other factors of production. He organizes, coordinates and controls other factors of production.

18:08 The entrepreneur, via the risk of the business, the reward for the entrepreneur is profit.

18:15 Okay, I think we have done justice to that topic. We want to look at the evaluation now.

18:23 One is define production. Define production. Second point is list four types of production.

18:34 List four types of production. Mention three examples of extractive production.

18:43 Three examples of extractive production. Mention four factors of production.

18:49 And find animation reward for each forms of production. Okay, thank you for watching.

18:59 My name is Akisim Blessing. So, next time.