Couple of basic questions

from Stardock Forums
I haven't quite figured out how production works. It often seems like small recently established colonies built stuff as quickly as my home planet. Do more people = more production? Are people useful for taxation but not production?

I've been looking through the manual, but I'm still a bit confused. It often feels to me like I can't quite grasp what effect my actions are having on the economy.
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Reply #1 from Stardock Forums Top
More people mean more money, and more money means more production. But, there is supposed to be some limit where you start spending more than 1 BC for one production. This limit is relaxed by the +Production bonuses, but I don't know if it also depends on population. It would make more sense if it did, because the population is the workforce, and a larger workforce is more productive (to a point).