HOLT, RINEHART AND WINSTON1 CIVICS IN PRACTICE HOLT Chapter 18 Goods and Services Section 1:American Production American ProductionAmerican Production

HOLT, RINEHART AND WINSTON11

CIVICSCIVICS IN PRACTICEIN PRACTICEHOLTHOLT

Chapter 18Chapter 18

Goods and ServicesGoods and Services

Section 1:Section 1: American ProductionAmerican Production

Section 2:Section 2: Distributing GoodsDistributing Goods

Section 3:Section 3: You the ConsumerYou the Consumer



The Main IdeaAmerican systems of mass production have made it possible to

produce goods more efficiently, which raises the U.S. standard of living. The American economic system has made

our economy one of the most successful in the world.

Reading Focus What are goods and services, and why are they important in

the economy? What are the main features of modern mass production? What is the service sector of the economy? How are profit, risk, and innovation related?




Production of Goods and Services from Resources [01:38]



Mass Production and Power [02:33]



Main features of modern mass production:Main features of modern mass production: Machine toolsMachine tools——produce parts that are exactly the produce parts that are exactly the

samesame Interchangeable partsInterchangeable parts——easily fit with other parts easily fit with other parts

and are easily replacedand are easily replaced Division of laborDivision of labor——specialization in each area of specialization in each area of

production speeds the processproduction speeds the process Assembly lineAssembly line——machines and workers move machines and workers move

product through production stagesproduct through production stages




Changing power sources:Changing power sources:

Early factories used water power.Early factories used water power. Late 1700sLate 1700s——Steam power replaced water Steam power replaced water

power.power. Late 1800sLate 1800s——internal combustion engines; internal combustion engines;

electricityelectricity




The profit motive drives the economy:The profit motive drives the economy:

Encourages people to take risksEncourages people to take risks Encourages innovations in production and Encourages innovations in production and

marketingmarketing




Question: What are the main features of modern mass production?

Three Main Features of Mass Production

standard parts

division of labor

machine tools

SECTION 1



The Main IdeaProducing goods is only the first step in filling consumers’ needs.

Getting goods to consumers involves a complex transportation system that makes it possible for American

businesses to sell their goods throughout the country and the world.

Reading Focus How are goods transported from manufacturers to

consumers? How are services delivered to consumers in the United

States? How are goods and services marketed to consumers??




Transportation and the U.S. economy:Transportation and the U.S. economy: Transportation systems move products around the Transportation systems move products around the

country. This is called country. This is called distributiondistribution.. RailroadsRailroads——created a single large market in the United created a single large market in the United

States; chief source of transportation through the midStates; chief source of transportation through the mid--1900s1900s

Air transportationAir transportation——carries mail and transports freight carries mail and transports freight with great speedwith great speed

Highway systemHighway system——automobiles are the leading means of automobiles are the leading means of transportation todaytransportation today




Benefits of mass marketing:Benefits of mass marketing: Sells goods in large quantitiesSells goods in large quantities SelfSelf--serviceservice——saves time and labor; many customers saves time and labor; many customers

can shop at the same timecan shop at the same time Standard packagingStandard packaging——fewer items must be weighed fewer items must be weighed

or measuredor measured OneOne--price systemprice system——prices are stamped onto the prices are stamped onto the

products; eliminates most bargainingproducts; eliminates most bargaining Bar codesBar codes——enable stores to keep up with inventories enable stores to keep up with inventories

and collect informationand collect information




Manufacturers, wholesalers, and Manufacturers, wholesalers, and retailers work together:retailers work together: Manufacturers sell to wholesalers in large Manufacturers sell to wholesalers in large

quantities.quantities. Wholesalers store goods and sell them to Wholesalers store goods and sell them to

retailers.retailers. Retailers sell goods to the public.Retailers sell goods to the public. Wholesalers link the factory to the retailer.Wholesalers link the factory to the retailer.




Question: What are the benefits of mass marketing?

SECTION 2

efficient inexpensive

Benefits of Mass Marketing



How Does Advertising Work? [04:08]



The Main IdeaAs consumers, we learn about the products we buy so

that we can make the best choices. Some independent and governmental organizations help

protect consumers’ interests.

Reading Focus What are the keys to becoming a wise consumer? What should a consumer consider in deciding to buy

on credit? What do independent organizations and the

government do to protect consumers?




Wise consumersWise consumers study advertisements for special sales and use study advertisements for special sales and use

coupons.coupons. judge product quality and buy only what serves judge product quality and buy only what serves

their needs.their needs. study product labels.study product labels. compare various products, brands, stores, and compare various products, brands, stores, and

prices.prices. read warranties and instructions.read warranties and instructions.




Independent organizations and the Independent organizations and the government protect consumers.government protect consumers. Government labeling requirements provide contents, health, Government labeling requirements provide contents, health,

and safety information.and safety information. The Better Business Bureau assists consumers with unfair The Better Business Bureau assists consumers with unfair

business practices.business practices. Government agencies protect consumers from false Government agencies protect consumers from false

advertising, health and safety risks, and mail fraud.advertising, health and safety risks, and mail fraud. States and cities provide consumer protection offices.States and cities provide consumer protection offices. Consumers Union publishes reports on most products sold.Consumers Union publishes reports on most products sold.




Installment plans and charge accounts:Installment plans and charge accounts: Charge accountsCharge accounts——convenient; can help establish convenient; can help establish

good credit; interest rates make debt harder to good credit; interest rates make debt harder to pay offpay off

Installment plansInstallment plans——allow purchases without allow purchases without paying the full amount up front; buyer uses paying the full amount up front; buyer uses product while paying for it; product can be product while paying for it; product can be repossessed if payments are missed; service repossessed if payments are missed; service charges and interest rates increase the total costcharges and interest rates increase the total cost




Being an Informed Consumer [03:53]



Question: What do independent organizations and the government do to protect consumers?

SECTION 3

set and enforce regulations

publish product comparisons and

reports

help consumers when treated unfairlypublish consumer

information

How Independent Organizations and Government Help Consumers

How Independent Organizations and Government Help Consumers



Chapter 18 Wrap-Up

1. What are the three main features of mass production?2. What incentive is a key part of mass production, and

why is it important?3. Why does the U.S. economy depend on the

transportation and marketing of goods?4. How are products distributed from the manufacturer

to the customer?5. What choices are available to help consumers make

smart purchases?6. What are the advantages and disadvantages of using

charge accounts, credit cards, and installment plans?

1. What are the three main features of mass production?2. What incentive is a key part of mass production, and

why is it important?3. Why does the U.S. economy depend on the

transportation and marketing of goods?4. How are products distributed from the manufacturer

to the customer?5. What choices are available to help consumers make

smart purchases?6. What are the advantages and disadvantages of using

charge accounts, credit cards, and installment plans?

Documents

HOLT, RINEHART AND WINSTON1 CIVICS IN PRACTICE HOLT Chapter 18 Goods and Services Section 1:American Production American ProductionAmerican Production