PRODUCTION

Production is generally understood as making of goods in a factory such as machines, televisions, cloth, medicines etc. or growing of crops on farms. But in economics the word 'production' has a much wider meaning. It includes not only the making of various goods but also the services. For all of us services are also as essential as the goods. in fact some of the goods cannot be used by us if necessary services are not provided. For example, television or radio cannot be used unless the services of artists or technicians are provided. Similarly a train or a bus is a good which cannot be used without the services of a driver. Goods cannot reach actual users without the services of transporters, traders etc.

Thus production includes the goods made and the services provided in an economy.There are some serives which which are provided by family members to themselves or to one another like cooking and washing clothes, cleaning the house, ironing clothes, polisshing shoes and so on. Such services are also a part of production. But when it comes to measurement of the value of these services, problems arise about getting the required data of the quantity and value of these services. As such, in practical estimates, these services are left out of production. Similarly all 'leisure-time' activities such as growing fruits,flowers and vegetables in kitchen garden are also excluded from production for the same reason.