Examkin

Question

Difficulty: HardMeaning and Types of Production

In economic theory, storing harvested agricultural produce in a warehouse to preserve its quality until market demand rises during the off-season creates form utility and is therefore classified as secondary production.

Answer: Answer

Answer

The statement is False. Storing agricultural produce creates time utility and belongs to tertiary production, not secondary production.
The statement is false because storing agricultural produce without altering its physical nature does not create form utility. Instead, warehousing provides time utility by making produce available during scarcity periods. Consequently, storage is a commercial distribution service falling under tertiary production, not secondary production.

Step-by-Step Solution

1
Analyze the type of utility created by warehousing agricultural produce.
Holding produce in a warehouse until the off-peak season makes goods available when consumers need them later, creating time utility.
Time utility is generated by storing items until a future period of higher demand or scarcity.
2
Classify the economic sector corresponding to time utility and commercial storage services.
Warehousing and distribution services form part of the tertiary sector (commercial services).
Secondary production is confined to processing, manufacturing, and construction activities that alter the physical shape or form of raw materials (creating form utility).

Key Concept

Classification of Production Types and Economic Utilities
Estimated Time:1m 30s
Rate this question

Topics

Meaning and Types of Production

More questions from this topic