the production of goods
Many of us actually know what goods are but the problem with many of us is that we don't really know the types of goods produce and how those goods are even produced.
Likewise same thing linked to services rendered, we all know what services are but we don't really know the types of services and production involved in those services.
in this post I will be talking about the production of goods, production of services and I also talked about other relevant topic needed related to this topic.
(1). consumer goods:many goods are produced for used by people in the ordinary course of their daily living and are used up in the process.
the using is termed consumption and the goods used in this way are consumer goods. the people who use them are consumers. The people who produce them are called the producer or also can be called the manufacturer. what time The people who use them are consumers. And if we are to study this above sentence carefully, we will discover that we are all what? we are all consumers we are all consumers in the sense which is of course wider wider than the normal day meaning. We consume auto cars television sets writing papers and clothes as well as food.
some goods such as the television set and consumed or used up over a fairly long. although they tend to wear out, they last longer than articles of food and for this reason are frequently described as durable goods. food on the other hand is not durable. i.e they can not really last longer like that. those types of goods are referred to as non durable goods or rather the economist always call them the perishable goods.
(2) Capital Goods: few modern consumers goals can be produced without the help of machinery or some form of equipment. the more complex the final product is the more lengthy at the various stages of production and the greater is the reliance on machinery for its manufacture.
Tools, machines and equipment of all kinds are termed capital goods and the process of accumulating more equipment is often described as investing in capital or capital investment.
streetly capital investment also include the placement of old machines but firms very rarely replace machinery without bringing it up to date. Very often machinery has to be placed before it is one out because better equipment becomes available must be used if the firm is to remain competitive.
Capital goods maybe simple items such as spanners Spade or ploughs, or they may be very complex such as automatic lathes, electronic computers or advanced video equipment.
Capital goods may also be durable as are the examples just giving or not durable for example machine oil, office stationery or motor fuel.
Business Firms have to invest in uptown date equipment if they wish to improve their capacity to produce goods.
Modern government also recognised that if they wish to encourage a greater volume of production they must encourage business organisations to invest in capital goods.
In 1966 the British government started to pay substantial songs in investment-grade to industrial companies to help in the purchase of machinery. The government at that time was influenced by the knowledge that other industrial countries such as Germany and Japan which were expanding their total production much more quickly than britaini where devoting higher proportion of their total resources to capital investment.
(3). Goods which can be used for consumption or capital investment:
it is they used to which they are both rather than the nature of the gods themselves which determines whether they are for consumption investment. let us look for an example a motor car can be used for pleasure or to take a salesman to see a customer.
Firms which buy cars for staff do not always do so in the belief that their production of goals will increase.
no firm can assume that his capacity to produce go swimming pool simply if it pays more equipment.
complex machines can be costly failures if they are not use intelligently. in recent years there has been a tendency to to distinguish between investment and general that is any expenditure on goals which can have a capital purpose and productive investment. capital expenditure which does or which does lead to the production of more of better quality goods
PRODUCTION OF SERVICES
Early of this post in the introduction part, I talked about us looking at the production of goods and services and other relevant aspect to touch under this topic.
And the first section talked about the production of goods, this second section will be talking about the production of services.
(1). consumer services:
all types of communities have made use of consumer services. in an underdeveloped community the services tend to be does which require a low level of skill and I provided by the po for the which has a community becomes richer and as well as more evenly distributed to the population many of these services are replaced by capital goods.
let's take for example washerwoman are replaced by automatic washing machines or launderette, domestic servants are replaced by vacuum cleaners fitted carpet and deep freezers. services at themselves change the new electrical equipment needs repair and maintenance people with more money require their own motor cars and wish to travel opportunities arise from auto repair and travel services. during the 1960's the number of small return shows declared by the number of riding stables sailing clubs and ski other sport instructor increased.
(2). CAPITAL SERVICE
some services assist in the production of other goods and services. modern industry relies heavily on research of all kinds before last song can be safely committed to the production of goals. research may be directed to world's market so that firms can find out the names likes and dislikes with their customers or towards production is seeking new sources of materials such as the location of all of mineral deposit or in developing new methods of manufacturing or more efficient method of distributing goods.
in my next post will be talking about public and social services and also will be talking about the measurement of living standard.
share your views in the comments section below.
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