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

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gcse economics - production, distribution & consumption

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