Presentation on theme: "Chapter 18 Goods and Services"— Presentation transcript:
1Chapter 18 Goods and Services American Civics4/2/2017Chapter 18 Goods and ServicesSection 1: American ProductionSection 2: Distributing GoodsSection 3: You the ConsumerChapter 18
2Section 1: American Production 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 FocusWhat 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?
3Production of Goods and Services from Resources [01:38]
5Main features of modern mass production: Section 1: American ProductionMain features of modern mass production:Machine tools—produce parts that are exactly the sameInterchangeable parts—easily fit with other parts and are easily replacedDivision of labor—specialization in each area of production speeds the processAssembly line—machines and workers move product through production stages
6Changing power sources: Section 1: American ProductionChanging power sources:Early factories used water power.Late 1700s—Steam power replaced water power.Late 1800s—internal combustion engines; electricity
7The profit motive drives the economy: Section 1: American ProductionThe profit motive drives the economy:Encourages people to take risksEncourages innovations in production and marketing
8Three Main Features of Mass Production SECTION 1Question: What are the main features of modern mass production?Three Main Features of Mass Productionmachine toolsdivision of laborstandard parts
9Section 2: Distributing Goods 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 FocusHow 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?
10Transportation and the U.S. economy: Section 2: Distributing GoodsTransportation and the U.S. economy:Transportation systems move products around the country. This is called distribution.Railroads—created a single large market in the United States; chief source of transportation through the mid-1900sAir transportation—carries mail and transports freight with great speedHighway system—automobiles are the leading means of transportation today
11Benefits of mass marketing: Section 2: Distributing GoodsBenefits of mass marketing:Sells goods in large quantitiesSelf-service—saves time and labor; many customers can shop at the same timeStandard packaging—fewer items must be weighed or measuredOne-price system—prices are stamped onto the products; eliminates most bargainingBar codes—enable stores to keep up with inventories and collect information
12Manufacturers, wholesalers, and retailers work together: Section 2: Distributing GoodsManufacturers, wholesalers, and retailers work together:Manufacturers sell to wholesalers in large quantities.Wholesalers store goods and sell them to retailers.Retailers sell goods to the public.Wholesalers link the factory to the retailer.
13Benefits of Mass Marketing SECTION 2Question: What are the benefits of mass marketing?Benefits of Mass Marketingefficientinexpensive
15Section 3: You the Consumer 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 FocusWhat 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?
16Wise consumers Section 3: You the Consumer study advertisements for special sales and use coupons.judge product quality and buy only what serves their needs.study product labels.compare various products, brands, stores, and prices.read warranties and instructions.
17Independent organizations and the government protect consumers. Section 3: You the ConsumerIndependent organizations and the government protect consumers.Government labeling requirements provide contents, health, and safety information.The Better Business Bureau assists consumers with unfair business practices.Government agencies protect consumers from false advertising, health and safety risks, and mail fraud.States and cities provide consumer protection offices.Consumers Union publishes reports on most products sold.
18Installment plans and charge accounts: Section 3: You the ConsumerInstallment plans and charge accounts:Charge accounts—convenient; can help establish good credit; interest rates make debt harder to pay offInstallment plans—allow purchases without paying the full amount up front; buyer uses product while paying for it; product can be repossessed if payments are missed; service charges and interest rates increase the total cost
20SECTION 3Question:What do independent organizations and the government do to protect consumers?set and enforce regulationspublish product comparisons and reportsHow Independent Organizations and Government Help Consumerspublish consumer informationhelp consumers when treated unfairly
21Chapter 18 Wrap-Up1. 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?