Hello everybody and welcome back to another post on the topic of economics on your favorite blog named “ICCBizNews”.
Now you can finally make sense of and understand the jargon behind the word “Economics”.
Hahahahaha.
Okay, enough fun, and now let’s start with the post for today.
Today is the day when we talk about the different types of production.
Ever had an idea for a product but didn’t know what to do with it or are an entrepreneur and confused about what to produce and bring to market to sell for a profit??
If your answer to the above question is yes, then I may have some information that may help you solve your problem and clarify your doubts regarding what, when, where, and why to produce.
However, if your answer is NO, and you are clear and confident about what, when, where, and why to produce, stick around because there could be some AHAs for you over here.
Okay, let’s begin.
The process of production as we know it is undertaken by firms a.k.a Enterprises or Businesses who have the clarity, competence, capability, courage, capacity, and commitment to create stuff I.E. Products and Services that are required by others for consumption in the marketplace.
These ventures usually undergo these 3 stages of production to be able to build stuff that others wish to buy from them.
Here are the 3 stages of production:
- Primary production: This stage involves the extraction of resources from the earth, such as agriculture, fishing, and mining to name a few. Land and other natural resources are mainly utilized for the process of production in this stage.
- Secondary production: This stage involves the manufacturing of semi-finished and finished consumer goods, such as computers, motor vehicles, and clothing. Labour and Capital are the main resources utilized in this stage of production.
- Tertiary production: This stage involves the distribution of products and the creation of services, such as road haulage, financial services, and healthcare. Human capital is usually the most essential resource used in this stage of production.
The tertiary sector is further sub-divided into, tertiary, quaternary, and quinary sectors.
The quarternary sector of an economy includes the infrastructure of information technology and knowledge that enables an economy to produce goods and services successfully.
The quinary sector is defined as the not-for-profit aspect of the economic, political, and social infrastructure which favors economic activity including universities, charities, and government activity.
Sophisticated quaternary and quinary sectors are commonly viewed as essential to the economic development of a nation in a globalized economy.
Alright, that about wraps it up for this post “Types of production”.
I hope you all enjoyed it and learned a thing or two in the process.
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See you tomorrow.
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