Title Technology- Production I.pptx ✅

Production It means creation of utility or addition of value. It takes place in different stages of production: Primary Sector – the extraction of raw materials or generation of unprocessed goods. Secondary Sector – conversion of raw materials into finished goods. Tertiary Sector– transfer of goods to consumers through wholesaling and retailing networks. A whole gamut of direct and indirect services are involved. Quaternary Sector– it deals with a knowledge-based part and includes knowledge-oriented economic sectors such as information technology, media, research, etc,.
Production Factor inputs are used to generate output of final goods and services over the period of time. Unless value addition takes place factor incomes do not get generated. Production of goods and services is a flow variable. So new output of goods and services must be continuously produced.
Production Methodology or process in which factor inputs are combined to produce final goods and services is known as technology. Factor inputs are categorized into Land, Labour, Capital and Enterprise. Land means natural resources [Rent]. Labor means human resources [Wages and salaries]. Capital means human made factor input which includes both tangible and intangible capital [ Interest]. Enterprise is also human resources which plans, takes risk and brings co-ordination among factor inputs [ Profit].