gcse economics - production, distribution & consumption
This revision note explains what is meant by production, distribution and consumption
PRODUCTION
The goods and services produced by businesses. A good or servicemay actually be produced in a number of stages by a number of different businesses.
DISTRIBUTION
The way in which the good or service is delivered to the consumer for purchase. It could be through a wholesaler, retailer or sold directly over the internet.
CONSUMPTION/ CONSUMER EXPENDITURE
Spending by consumers on goods and services.
CHAIN OF PRODUCTION
This shows the various stages of production that a good or service passes
through before it reaches the consumer.
E.g. a self-assembly table:
Tree cut down....
Table manufactured...
Stocked in a shop e.g.IKEA...
sold
to the customer
TRENDS IN CONSUMER EXPENDITURE
In recent years many individuals have experienced an increase in their disposable income (the money they have to spend after tax and essential payments). Many people are also choosing to retire or go part time at an earlier age.
Consequently growth areas of consumer expenditure include
- LEISURE SERVICES e.g. holidays, eating out
- TECHNOLOGY e.g. mobile phones, computers
- LEISURE GOODS e.g. TV’s, gardening equipment
ACTION
A What are your main areas of consumer expenditure/consumption?
B Which of the stages of the chain of production fit into a)primary b) secondary c) tertiary?
C Construct a chain of production for
a pint of milk
These GCSE Economics revision notes have been kindly provided by Peter Davies of Mill Hill School, Ripley Keep Up-todate with your GCSE Economics - Subscribe Free to Economics in the News by Email
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