Production of Goods and Services

Production - is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output).

Goods and Services  Goods are items you buy, such as food, clothing, toys, furniture, and toothpaste  A SERVICE is an action that a person does for someone else.  Goods and Services are result of the combination work various production factors which will satisfy the need of consumers.

Two types of Goods and Services Economic Assets Free Assets Private good Public good Goods and services that have production cost Goods and services that has no production cost. Private goods are goods that must be bought in order to be consumed and whose ownership is restricted to the group or individual that purchased the good. Public goods are generally open for all to use and consumption by one party does not deter another party's ability to use it.

Class Activity  Give 3 Importance of Services in our economics system

Importance of Services in economics System  1. It is the key to achieve goals in developing the economy of the country.  2. It is the key element of economic system of the country.  3. It is the employment source of economic system.  4. It is the source to produce income in the country.

Factors affecting Goods and Services Economics factors - Land -capital - Entrepreneur -Labour - Technology Non- economic factors - Attitude - Social values -tradition -culture - National policy Political system

Principles of Effective Goods production and services Production Planning Following the process of the production plan Examining to evaluate the performance Solving Problems

Quiz

Direction: Identify the economic words that has been describe in each sentence. 1.