5. Match the words from a and b to make a combination.

   A		B
   economic		welfare
   random		material
   human		care
   raw		choice
   medical		resources
   ultimate		system
   scarce		elections
   general		selection
   credit		consequences
   inflationary		card
   living		building
   model		standards

6. Find synonyms and antonyms (if any) to the words given.

scarcity	income	expense
beyond	deny	ultimate
revenue	result	consequence
primary	central	accept
cause	rarity	local
outcome	welfare	resource
reject	deficit	sustain
federal	profit	expenditure
well-being	price rise	within
product	goods	abundance
prove	commodity	source
inflation	back up	state

II. Production

Today production is generally regarded as the supply of utilities to satisfy wants, but this has not always been the case. In the eighteenth century the French Physiocrats included in their deliberations on production only the extractive industries. A little later Adam Smith did include all manufacturing but was very emphatic on his exclusion of services. "The labour of the menial servant does not fix itself in any vendible commodity. His services perish in the very instant of their performance..."

This would be to say that the efforts of workers who extract the raw materials and those of others who convert them into a TV set are productive, but the services of the marketing men who deliver the end product to the consumer and the engineer who repairs it are not productive. Would not their efforts also perish the moment the set broke down unless there was someone else in the chain whose services helped to satisfy the consumer's want. This really is the key to the true definition. What is the purpose of production? To satisfy a want. It therefore follows that all the clerical and design workers at their desks are every bit as involved as the workers on the shop floor because they are all helping to produce the end product. Thus economists do not now distinguish between "manual" and "mental" work and certainly do not denigrate the latter. Indeed a very rough guide to the standard of living enjoyed by a country is to compare the percentage of "productive" to "service" workers. The more advanced countries have been able to substitute capital for labour in many productive trades so that workers have moved into a vast range of service trades, many of a personal service nature, and so have enhanced the general standard of living.

We see therefore that when Man is engaged in Direct Production i.e. when he is producing everything for his own consumption he has to turn his hand to everything. He never becomes a master of a particular trade and most of his time is spent in satisfying his many wants. However when he is engaged in Indirect Production, he chooses one particular occupation and specialises. Very little of what he does will satisfy his own wants and likewise most of his wants will have to be satisfied by the activities of other specialists. The surpluses of Primary, Secondary and Tertiary trades are exchanged and the general standard of living is raised.