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 Form 1 Business Studies online video lessons on production

Types of production and characteristics of direct (subsistence)production

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Answer Text:
Types of production.
-We have two types of production.
1) Direct production.
2)Indirect Production.
Direct production.
-Refers to the production of goods and services by and individual for use. Also
known as subsistence production.
Characteristics of direct (subsistence)production:
-Production is carried out in small scale.
-Production is usually for own use or family use.
-No specialization as one does everything for himself.
-The goods produced are not for sale but for own consumption.
-Subsistence production uses simple methods in production.
-In this production, low quality goods are produced.
-Small quantities are produced.


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