ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Consumers buy goods and services to satisfy their wants, and producers make goods and services. This video from the Explore Economics series for kids helps them understand that people are both consumers and producers.

Detailed explanation-2: -Producers are companies that purchase goods and services that they transform into other products. They include both manufacturers and service providers. Procter & Gamble, General Motors, McDonald’s, Dell, and Delta Airlines are examples.

Detailed explanation-3: -The people who do the selling and buying are producers and consumers. Producers create, or produce, goods and provide services, and consumers buy those goods and services with money. Most people are both producers and consumers. Producers create or provide a certain good (product) or service.

Detailed explanation-4: -For example machinery, tools, raw materials, seeds, manure and tractor etc are all example of producer goods. Raw materials, power, fuels etc. used by the producers for further production of final goods and services are also called intermediate goods.