Production and the Business Environment: notes

Key ideas

• Commerce: all the activities that bring goods from producers to consumers.
• Needs and wants: needs are basics such as food and shelter; wants are extras.
• Factors of production: land, labour, capital and enterprise.

Types of production

• Primary: taking from nature, such as farming and mining.
• Secondary: making goods, such as milling maize.
• Tertiary: services, such as banking and transport.

Division of labour

Each worker does one task. It raises output and skill, but work can become boring.

Common mistake

Do not confuse industry (making goods) with commerce (moving and selling them).