Commerce: Occupation, Production.

Occupation is a business or what someone does to earn a living. Somehow, we
all must engage in one job or another at some point in order to meet our
These are various kinds of work that a person can do to earn a decent living.
Some occupations involve extracting resources from the soil and water e.g.
farming, fishing, mining or changing the form of raw materials to finish goods or
semi-finished goods e.g. manufacturing, extraction and construction. Others are
service provides. E.g. Police, Doctors, etc.
Classification of Occupation
Occupations are classified based on the nature of work. Occupation basically
has THREE categories.
• Industrial Occupation
• Commercial Occupation
• Services
1. Industrial Occupation: This involves people who are engaged in the
physical production of goods. They also include the assembling and putting
of component parts together to make it whole.
The following is a list of industrial occupations. These individuals are generally
characterised by being manual-labour-intensive and requiring little or no formal
• Auto mechanic
• Beader
• Bobbin boy
• Clerk of the Chapel
• Filling station attendant
• Foreman
• Maintenance engineering
• Mechanic
• Miller
• Moldmaker
• Panel beater
• Patternmaker
• Plant operator
• Plumber
• Sawfiler
• Shop foreman
• Soaper
• Stationary engineer
• Wheelwright
• Woodworkers
• Bartender
• Waiter
• Construction worker
• Cashier
• Factory worker
• Plumber
2. Commercial Occupation: This set of people is engaged in all commercial
activities associated with finished products from the industrial sector. They
include: Traders, transporters, bankers, etc.
3. Service Occupation: These are people who render services to people or
companies. They are not directly involved in actual production of goods.
Examples include Civil servants, Police, Lawyers, Cleaners, etc.
Factors That Determine Types of Occupation
1. Climate and weather differences
2. Education, Skill and Training
3. Natural Resources
4. Salary and Wages
5. Government Policy
6. Industrial hazards
7. Religious Influences


Meaning of Production
Production is simply the process of converting raw materials or other
inputs such as ideas into finished goods or services.
Production is also the process of making or growing something for sale. It is
the process of creating utility. All goods and services produced must be able
to give value to the consumers.

Production is grouped into 2 major categories. They are:
1. Direct Production: This involves production of goods and services on
a small scale. It is usually done by an individual for the purposes of
his/her family use or consumption. The goods produced are meant for
the family use alone and not for sale.
2. Indirect Production: Goods and services are produced on a large scale.
Indirect production is sub divided into: a. Primary Production. b.
Secondary Production. c. Tertiary Production
• Primary production: Primary production refers to the extraction of
basic raw materials from their natural location as provided by nature.
Examples of primary production are agriculture, fishing, mining etc.
• Secondary Production: Secondary production involves the
transformation or conversion of raw materials or semi-finished goods
into final forms that are acceptable to the consumers. Examples are
houses, cars, food, etc.
• Tertiary Production: This ensures goods produced at the primary and
secondary levels are distributed to the final consumers. This also
includes all kinds of service industries such as transportation,
communication and tourism.

Production is important for the following reasons
1. Production helps to improve our standard of living
2. Provision of employment opportunity
3. Production makes goods and services available
4. Production helps to increase export potentials
5. Production increases the wealth of the people
6. Production helps people to acquire special skills
7. Production can lead to specialization

Factors of production describe the inputs that are used in the production of
goods or services in order to make an economic profit.
The factors of production include land, labour, capital and entrepreneurship.


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