LEVELS OF PRODUCTION

LEVELS OF PRODUCTION

WHAT DO LEVELS OF PRODUCTION MEANS?

Levels of production refer to the amount of goods that are produced. 

Multiple Choice

TRUE OR FALSE

Levels of production refer to the amount of goods that are produced.

• TRUE

• FALSE

Levels of Production are categorized as;

1.subsistence

2.domestic

3.surplus/ export

SUBSISTENCE LEVEL OF PRODUCTION

•This is the lowest level of production.

• Subsistence productions refer to output from the production process that is just enough for the survival.

•This level of production is geared towards satisfying basic needs.

Multiple Choice

TRUE OR FALSE

Subsistence level of production is the lowest level of production.

• TRUE

• FALSE

DOMESTIC LEVEL OF PRODUCTION

•Domestic production refers to production that is more than survival level. 

•Production is adequate to supply enough goods and services to meet the needs of its citizens.

•Excess is not available for export.

Multiple Choice

TRUE OR FALSE

The domestic level of production is adequate to supply enough goods and services to meet the needs of its citizens.

• TRUE

• FALSE

SURPLUS OR EXPORT LEVEL OF PRODUCTION

•At the surplus level the country produces more than enough goods and services to meet its domestic needs and the extra is exported to other countries.

•

•This surplus, when sold, earns the country valuable foreign exchange which can be used to purchase goods and services to improve the country.

Multiple Choice

TRUE OR FALSE

At the surplus level of production, the country produces more than what its citizen needs and extra for export.

• TRUE

• FALSE

Multiple Choice

TRUE OR FALSE

This surplus, when sold, earns the country valuable foreign exchange which can be used to purchase goods and services to improve the country.

• TRUE

• FALSE