The First vital process of an economy is manufacture which must go on incessantly. "Production comprises any action, and the stipulation of any service, which satisfies and is likely to satisfy a want." In this wider sense, production includes products produced on farms like rice, wheat, fruits and vegetables and those manufactured in the factories like clothes, electronic goods, electrical items etc. It also includes the services of shopkeepers, traders, transporters, actors, doctors, civil servants, teachers, engineers and akin to who help in fulfilling the needs of the people in the economy through their services. But production eliminates certain goods and services though they satisfy human needs. It includes, domestic work done within the family by the housewives, husband and children, production of hobby articles like paintings, production of vegetables in the kitchen garden. The last is voluntary work. John Hicks defines "Production is any activity directed to satisfaction of other people's wants through exchange." Thus production means exchange of goods for consideration of money.

The second vital process of economy is consumption. It means the use of financial goods and services in the pleasure of human needs. The consumption that goes on in the fiscal may be of different types. Prof. Hicks organized it into two grouping - single-use goods and durable-use goods. Single goods are those which are used in a single act. Such goods are food stuffs, cigarettes, matches, fuel etc. durable use goods are those which can be used for a substantial period of time. It is unimportant whether the time is short or long. Such goods are pens, bicycles, clothes, fans, furniture etc. Prof. Brown defines as "For every kind of completed goods, in reality there is a kind of channel or rather a system of pipeline, elongating from the unique sources of resources used to the consumer." The accretion of stock of such goods is called inventory investment.

Economic growth is "the process whereby the real per capita income of a country increases over a long period of time." We itemise the factors which lead to the growth of an economy." Growth of population predominantly working population is the first cause of growth. A rapidly growing population in relation to the growth of the national product keeps the output per head at a low level. On the other hand, the enhancement in the productivity per head of developed economies like United States has been much higher because of their low rates of their national product. Technical acquaintance and development are the twin features in mounting productivity per head. Technical knowledge and development are autonomous It is technical knowledge which brings about new means of production, leads to innovation and growth of new equipment. The supply of savings is another factor that determines the growth rate of economy. Borrowing from abroad is another source of capital for the growth of economies. External borrowing is resorted to for two reasons. To supplement low domestic savings and to get foreign currency for the purpose of importing capital for development purposes. Thus all economies whether they are capitalist, socialist or mixed perform these important functions of production, consumption and growth.

The last and the most imperative problem is to find out whether the economy is growing through time or is it sluggish. Economic growth takes place through a superior rate of capital configuration which consists of restoring existing capital goods with new and more productive ones by adopting more well-organized production techniques or through modernization. Economic growth enables the economy to have more of both the goods.