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Question

Difficulty: EasyMeaning and Types of Production

A farmer in Kaduna grows crops exclusively to feed his own household without offering any portion of the harvest for sale in the market. Which type of production is demonstrated by this activity?

  1. Direct productionAnswer
  2. B
    Indirect production
  3. C
    Commercial production
  4. D
    Tertiary production

Answer

Direct production
Direct production is defined as the type of production in which goods and services are created by an individual solely for personal or family consumption, without any reliance on market exchange or specialization.

Step-by-Step Solution

1
Analyze the objective of the economic activity in the scenario
The farmer produces crops solely for subsistence and family consumption without market exchange
Production intent determines whether production is classified as direct or indirect
2
Classify the activity based on production types
Production intended purely for self-use without trade is defined as direct production
Direct production meets immediate personal needs directly from the output created

Key Concept

Direct versus Indirect Production
Estimated Time:45s
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Topics

Meaning and Types of Production

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