Production is any activities involving human effort that leads to the satisfaction of wants. Production is complete only when goods and services produced reach the final consumers.

Ours wants can be divided into 2 groups namely; goods and services

Goods are made up of durable and non-durable goods . durable goods include car, houses, benches etc while non-durable goods include: food, drinks, soap etc.

Services are those things that gives satisfaction to human being e.g education, medical care; police protection, entertainment etc.

            All activities involved in production can be pgrouped into 3 broad categories namely: commerce(tertiary industries) industry, direct services