Meaning of Production (Direct, Indirect, Primary, Secondary, and Tertiary)

Subject: Economics

Class: SS 1

Term: First Term

Week: 7

Age: 14-16 years

Topic: Theory of Production

Sub-topic: Meaning of Production (Direct, Indirect, Primary, Secondary, and Tertiary)

Duration: 80 minutes

Behavioral Objectives

By the end of the lesson, students should be able to:

1. Define production and differentiate between direct and indirect production.
2. Identify and explain the three types of production: primary, secondary, and tertiary.
3. Give examples of each type of production and discuss its importance to the economy.

Keywords

• Production
• Direct Production
• Indirect Production
• Primary Production
• Secondary Production
• Tertiary Production

Set Induction

The teacher will display pictures of various goods and services like a farm, a factory, and a retail shop to introduce the different types of production involved in their creation.

Entry Behavior

Students are familiar with basic economic activities and understand concepts like supply and demand.

Learning Resources and Materials

1. Economics textbooks
2. Whiteboard and marker
3. Flashcards with images of different production activities

Building Background/Connection to Prior Knowledge

Students have previously learned about supply and demand and understand that production is necessary for goods and services to be available in the market.

Embedded Core Skills

• Critical thinking
• Observation
• Classification

Learning Materials

1. Pictures or diagrams representing primary, secondary, and tertiary production
2. Printed examples of direct and indirect production

Reference Books

1. “Economics for Senior Secondary Schools” by Adegoke
2. Lagos State Scheme of Work for Economics

Content

1. Meaning of Production

• Production: Production is the process of creating goods and services to satisfy human wants. It involves using resources (land, labor, capital, and entrepreneurship) to make products available to consumers.

2. Types of Production

Production can be classified based on the stages involved:

a. Direct and Indirect Production

• Direct Production: Direct production is the process where individuals produce goods or services for their own personal use, without involving exchange or trade.
  • Example: A farmer growing food solely to feed his family.
• Indirect Production: Indirect production involves producing goods or services for sale or exchange, rather than for personal use.
  • Example: A factory producing goods for sale in the market.

b. Primary Production

• Primary Production: Primary production involves extracting raw materials from nature. It includes industries like agriculture, fishing, mining, and forestry.
  • Importance: Provides raw materials for other sectors and is essential for economic growth.
  • Examples: Farming, fishing, oil extraction.

c. Secondary Production

• Secondary Production: This stage involves processing and manufacturing raw materials into finished goods.
  • Importance: Adds value to raw materials and creates products for consumer use.
  • Examples: Textile manufacturing, car production, construction.

d. Tertiary Production

• Tertiary Production: Tertiary production includes providing services to consumers and businesses. This sector supports the primary and secondary sectors by facilitating distribution and providing essential services.
  • Importance: Provides services that are crucial for economic transactions and daily life.
  • Examples: Transportation, banking, healthcare, retail.

Presentation Steps

Step 1:
Teacher’s Activities: Define production and explain its importance in creating goods and services for satisfying human wants.
Learners’ Activities: Students will discuss goods they use every day and how they think these goods are produced.

Step 2:
Teacher’s Activities: Explain the difference between direct and indirect production, giving examples for each.
Learners’ Activities: Students will provide examples of direct and indirect production they see in their community.

Step 3:
Teacher’s Activities: Introduce primary, secondary, and tertiary production, using examples from agriculture, industry, and services.
Learners’ Activities: Students will classify examples (e.g., fishing, car manufacturing, banking) into primary, secondary, or tertiary production.

Step 4:
Teacher’s Activities: Summarize each type of production, emphasizing the interdependence between the primary, secondary, and tertiary sectors in the economy.
Learners’ Activities: Students will discuss why each type of production is necessary for a balanced economy.

Assessment

1. Define production.
2. Differentiate between direct and indirect production.
3. What is primary production? Give two examples.
4. Explain secondary production and its importance.
5. List three services provided under tertiary production.

Conclusion

The teacher will summarize the lesson by explaining how production is essential for the economy and how each type of production—primary, secondary, and tertiary—contributes to the creation of goods and services.

• Production: Land, Labor, Capital, and Entrepreneurship

“Explore the theory of production in Economics SS1! Understand direct and indirect production, and learn about primary, secondary, and tertiary production and their roles in the economy.”

Fill-in-the-Blank Questions

1. ________ is the process of creating goods and services to satisfy human wants.
2. When goods are produced for personal use without exchange, it is called ________ production.
3. ________ production involves producing goods for sale or exchange.
4. ________ production involves extracting raw materials from nature.
5. Farming is an example of ________ production.
6. ________ production involves processing raw materials into finished goods.
7. Textile manufacturing is an example of ________ production.
8. ________ production includes providing services like banking and healthcare.
9. The three types of production are primary, secondary, and ________.
10. ________ production adds value to raw materials through manufacturing.
11. Tertiary production supports other sectors by providing ________.
12. A fishing business falls under ________ production.
13. Building a house is an example of ________ production.
14. Retail stores are part of ________ production.
15. Transport services fall under the ________ sector of production.

FAQs with Answers

1. What is production in Economics?
   Production is the process of creating goods and services to satisfy human wants.
2. What are the types of production?
   The types are primary, secondary, and tertiary production.
3. What is direct production?
   Direct production is when goods are produced for personal use without exchange.
4. What is indirect production?
   Indirect production is when goods are produced for sale or exchange.
5. What activities are included in primary production?
   Primary production includes extracting raw materials, like farming and mining.
6. Why is secondary production important?
   Secondary production adds value to raw materials, creating finished goods.
7. What are examples of secondary production?
   Examples include car manufacturing and construction.
8. What does tertiary production involve?
   Tertiary production involves services like healthcare, retail, and transportation.
9. How do the three types of production relate to each other?
   They are interdependent, with each providing resources or services to the others.
10. What is an example of direct production?
    Growing food for personal use is an example of direct production.
11. How does indirect production benefit the economy?
    It creates goods for sale, supporting trade and economic growth.
12. What is the role of the tertiary sector?
    The tertiary sector provides essential services that support other sectors.
13. How does primary production support secondary production?
    Primary production provides raw materials needed for manufacturing.
14. What are some examples of tertiary production?
    Examples include banking, retail, and education services.
15. What is the difference between primary and secondary production?
    Primary production involves raw materials, while secondary involves processing them.

Evaluation Questions

1. Define production and explain its purpose in the economy.
2. Distinguish between direct and indirect production with examples.
3. List two examples of primary production and explain its importance.
4. Describe secondary production and provide two examples.
5. What is tertiary production, and why is it essential for the economy?
6. Explain how primary production supports secondary production.
7. Why is direct production not commonly practiced in modern economies?
8. Identify the type of production for the following: (a) Banking, (b) Mining, (c) Car manufacturing.
9. How does indirect production contribute to trade?
10. Discuss the interdependence of primary, secondary, and tertiary production.