Production Levels and Types Study Guide

This set covers definitions and levels of production, including primary, secondary, and tertiary sectors, as well as trade concepts and production scales like subsistence, domestic, and automated systems.

Production

The process of employing back, services available to consumers to make goods.

Primary production

The first level of production which involves taking raw materials from nature and is directly aligned to extractive industries.

Extractive industries

Industries in which raw materials are removed directly from the environment, including Logiculture, mining, fishing, and forestry.

Secondary Production

The production process of taking raw materials and converting them into finished or semi-finished productions.

Tertiary Production

Commercial services that assist the production and distribution process, such as insurance, transport, advertising, warehousing, teaching, and health care.

Traditional subsistence production

A type of production that caters to the basic needs of individuals and families for the general satisfaction of a household.

Domestic Production

Producing goods and services not just for the individual and family but for the entire local market, with products sometimes sold directly from farms to street markets.

Exporting

The process where products are produced domestically and sold to someone in a foreign country.

Trade Surplus

When a country exports more than it imports.

Trade Deficit

When a country imports more than it exports, meaning the business is operating at a loss.

Subsistence Production

A method of growing food for self-sufficiency rather than sale or trade, often associated with small farms and family labor to achieve food security in rural areas.

Domestic / Cottage Production

Small-scale production involving skilled labour often with hand crafting techniques, producing for the local markets and community within a country.

Surplus / Mass Production

Large scale manufacturing with standardized products and assembly lines where production levels exceed domestic consumption levels, allowing surplus to be sold on local or export markets.

Export Production

Industries that produce goods solely for export because there may not be a national demand for the products; it creates jobs and export revenue.

Automated Production

High-tech, robotic manufacturing with minimal human intervention where machines produce a great percentage of goods.

Needs

Essential items required for human consumption such as food, clothing, and shelter.

Wants

Non-essential items humans desire such as entertainment, books, and cars.