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Difficulty: MediumDirect and Indirect Production

A commercial cassava grower who processes raw tubers into gari exclusively to feed his immediate household is engaged in indirect production.

Answer: Answer

Answer

False. Production carried out strictly for family consumption without market exchange represents direct production.
The statement is false because the fundamental criterion distinguishing direct from indirect production is market exchange. Producing goods solely for personal or domestic use constitutes direct production, even if raw materials undergo manufacturing or processing.

Step-by-Step Solution

1
Examine the destination of the produced good.
The gari is made exclusively for private family consumption.
Direct production is defined by the end-use of output for self-satisfaction rather than trade.
2
Differentiate processing activities from market orientation.
Secondary activity (processing cassava) done for self-consumption remains direct production.
Indirect production requires specialization, division of labour, and production for sale in the market to satisfy third-party demand.

Key Concept

Direct vs Indirect Production
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Topics

Direct and Indirect Production

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