Production- the transfornation from input to output.

FOP:
Land- all natural resources (water),

Labour- physical and mental activities of  human beings for monetary value (lectures),

Capital- Used to further producw wealth (tools),

Entreprenuer- Ability and capability a person to take a risk (decision to coordinate and org. labour, land and capital.

Different types of Goods(tangible) and Services(intangible)

Goods ---- consumer goods:
                     A. Non-durable consumer
                     B. Durable consumer
           ----- Producer goods

Services ---- direct services and commercial seevices.

3types of FOP:

Primary- 1st stage of the production(
Secondary- manufacturing finished goods(cotton fabric),
Tertiary- Commercial-- maybank
                 Direct-- KPM

Stage II is the most efficient stage of production bcos the combinations of inputs are fully utilized

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