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Production is the process of creating or manufacturing products that can be sold in a market. Any product that is produced to be sold to consumers, from food to clothing to cars must first be produced before they are available to be consumed .
EX : Building car (production) , shipping it to its destination , and having a consumer to buy it for their use (consumption).
Consumption means the amount of something that people and other entities use. It is also the process of using something, often so that there is less of it available afterward. The term may refer to the using of products and services in an economy, or how much of those goods and services people use.Â
Types of Consumption
Types of Consumption
Direct Consumption
When the commodities consumed are for human want and they are consumed directly, it is called direct consumption. Examples include foods and beverages, toys, etc.
Productive Consumption
When a commodity is consumed in the production of another product, such consumption is known as productive consumption.
For example, the use of soda for the production of soaps. Productive consumption is also called indirect consumption.
Slow Consumption
The type of consumption of commodities that remain effective for a long period of time is known as slow consumption.
For example, the use of consumer durables, electronics, etc., falls in this category.
Quick Consumption
The consumption of commodities that last only for a moment is called quick consumption.
For example, consumption of single-use goods, such as tea, and coffee falls in this category.
Wasteful Consumption
The consumption of commodities that lead to the creation of waste or useless items is known as wasteful consumption.
Examples include the use of mirrors that break down due to mishandling.
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