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Difficulty: EasyMeaning and Types of Production

A processing factory in Ogun State purchases harvested cassava roots from local farmers and processes them into packaged industrial starch for commercial bakeries. Which type of production is carried out by the processing factory?

  1. A
    Primary production
  2. Secondary productionAnswer
  3. C
    Tertiary production
  4. D
    Direct production

Answer

Secondary production is the correct answer because processing raw cassava roots into industrial starch involves manufacturing and transforming raw materials into refined consumer or industrial products.
Secondary production encompasses all industrial, processing, and construction activities that convert raw materials supplied by the primary sector into semi-finished or finished market goods.

Step-by-Step Solution

1
Identify the nature of the economic activity described in the scenario
The business takes raw agricultural materials (cassava roots) and transforms them through industrial processing into starch.
Categorizing production requires identifying whether the activity is extraction, processing, or service delivery.
2
Classify the stage of production based on economic definitions
Activities that change the form of raw inputs into finished or semi-finished products belong to secondary production.
Secondary production creates form utility by converting raw primary goods into more usable products.

Key Concept

Types of Production (Secondary Production)
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Topics

Meaning and Types of Production

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