Subsistence farming is an example of direct production. Image credit weebly.com

Subsistence farming is an example of direct production. Image credit weebly.com

ZIMSEC O Level Commerce Notes: Forms of Production

Direct production
-This is when one produces goods and services for their own consumption for example subsistence farming or a tailor making their own dress

Advantages

  • Goods are tailor made according to one’s own taste.
  • Leads to self-satisfaction
  • Saves on labour costs
  • Resources are fully used

Disadvantages

  • Poor quality goods are produced as one is unlikely to have all the expertise required
  • Lack of other related skills
  • Does not satisfy some of the basic needs
  • Lack of variety
  • It takes a long time to complete the job

Indirect production
-This is when one spends his/her entire time in one occupation and then exchanges what he/she has made with others so as to satisfy his/her unfulfilled needs.

Advantages

  • Goods are produced in large quantities
  • Goods are produced in surplus
  • The goods are usually of higher quality than in the case of direct production
  • Leads to specialisation, standardisation and simplification
  • Leads to a wide variety of goods.

To access more topics go to the Commerce Notes page.

- See latest Zimbabwe grocery prices -

Deals

SEE LATEST SUPERMARKET PRICES, SHOP FOR GROCERIES VIA WHATSAPP
SEE PRICES & NEWS
We publish the latest grocery prices from Zimbabwean supermarkets. We also deliver groceries online

Quick NetOne, Telecel, Africom, And Econet Airtime Recharge

If anything goes wrong, click here to enter your query.