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In: Economics

Many people think of production as a highly structure, often mechanical, process whereby raw materials are transformed into finished products

Many people think of production as a highly structure, often mechanical, process whereby raw materials are transformed into finished products.. Economists emphasize, however, that production is also a much more general concept, encompassing many activities not ordinarily thought of as such. Production could be defined as any activity that creates present or future utility. Share two examples of production that a typical person might not ordinarily think of as production. 

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Expert Solution

One such example is harvesting rice - one might not think that this is the typical mechanical or any such process where a raw product is transformed into a finished one, but it is still a production since it is an activity that creates a future utility (or food)

Another example of production is expanding office space to produce new jobs - here, the activity is an expansion of the office space, which creates a present utility of having more jobs for seekers.


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