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Select the correct form of the given verb:
Oil ____________ (produce) takes place in this factory.
a. Produced
b. Production
c. Produce
d. Producing

Answer
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Hint: The above context hints towards a process. Processes generally take the suffix ‘ion’. E.g. Induction.

Complete step-by-step answer:

 Nouns are names given to persons, places, animals, or things. Nouns can be of several types- Common noun, Proper noun, Abstract noun, and Collective noun.
Verbs are qualified as action words. They are conjugated in different tenses and have many varied forms. Verbs and nouns bear the same idea and convey the same meaning depending on the way in which they are used in a sentence.
Now, let us look at the four options and see the function of ‘produce’ in that option.
In option ‘a’, produced denotes a Past Participle. Past Participles are used in the Past Perfect Tense and the Present Perfect Tense. They are generally paired with auxiliary verbs.
In option ‘b’, production refers to a physical process that we can comprehend abstractly. Thus, in the above sentence, production is a noun.
In option ‘c’, produce refers to the infinitive ‘to produce’ conjugated in the Simple Present Tense. It stands for action. Therefore, it is a verb.
In option ‘d’, producing denotes a Present Participle or the ‘ing’ form of a verb. The Present Participle is used in the Continuous and Perfect Continuous Tense types. Therefore, it is a verb.
From the above explanation, we can conclude that option ‘b’ production is the correct answer as it is a noun and it fits the context of the question.

Note: Understanding the different forms of the word as different parts of speech is the key to solving this question.