Introduction

• Production-is the provision of goods and services to satisfy human needs and wants.

Goods and Services (Products)

• goods– these are tangible items with physical attributes for example a car.
• Goods can be classified as:
• durable goods which last for a long time. e.g. cars and furniture.
• nondurable goods– these have a short life span for example perishable goods like fruits, clothes and other types of foodstuffs.
• consumer goods– these are finished and ready for use by the end user e.g. clothes, bread, chips etc.
• Capital ( also known as Producer) goods-these are used to produce other goods for example tractors.
• Services– are intangible items such as education and entertainment.

Needs and wants

• Needs-are things that we need in order to survive. Basic human needs include water,food,shelter,clothes, medical care, education.
• Wants-These are things that we can do without but require in order to live comfortable lives. Examples of wants are LCD televisions, Sofas etc.

–Producers and Consumers

• Producer– those involved in obtaining raw materials or manufacturing goods, offering services and trading.
• Consumer– the end users of goods and services (products).

To access more topics go to the Commerce Notes page.