1. Chapter 19
Section 1

2. Producing Goods and Services
Goods- tangible products
Have to be produced/ made
Services- work performed for someone else
Factors of Production
4 Factors of Production
Natural Resources, Labor, Capitol, Entrepreneurs
1. Natural Resources
Things of nature that make production possible
Land, wood, water, coal, oil

3. Producing Goods and Services
Labor
Labor force (human resource)
Physical and mental
Varies in size, time, location
Population growth, immigration, education, war disease, and destruction all have had an effect on quality and quantity of labor
Entrepreneurs
Individuals who start new businesses
Introduce new products
Driving force of the economy

4. Producing Goods and Services
Capital
Capital goods
Tools, machines, buildings
Used to help make other products
Cars, bulldozers
Capital goods are the results of production
Consumer goods- satisfy wants directly
Capital goods- satisfy wants indirectly by aiding production of consumer goods

5. Gross Domestic Product
GDP
Total value of all final goods and services produced during 1 year
Measuring GDP
Monetary measure
Measures standard of living
Quality vs. Quantity
GDP only measures Quantity

6. Section 4

7. Consumer Rights and Responsibilities
You have the right to enter into any chosen profession
Our rights as consumers have certain responsibilities
Knowing information about products
Recognizing good quality
Consumers must protect themselves
Protecting Consumers
Consumerism- movement to educate buyers about the purchase they make
Congress has passed laws to protect citizens
Fair packaging and Labeling Act

8. Consumer Bill of Rights
Since the 1960’s the government has tried very hard to protect consumers
Outlawed monopolies
Fair trade acts
JFK and Nixon emphasized 5 rights of Consumers
1. Right to a safe product
2. Right to be informed
3. Right to choose
4. Right to be heard
5. Right to Redress

9. Role as a Consumer Use of Income Decision Making What are your Goals?
Disposable income- money person has after taxes have been collected
Discretionary income- money left over after necessities have been bought
Charge
Credit
Decision Making
Opportunity Costs have to be weighed.
What are your Goals?
Budget
Needs vs. wants

10. Role as a Consumer Savings Savings Regularly Deciding Your Savings
Money set aside for the future
Large purchases, vacation, retirement, emergencies
Savings Regularly
Save small for long periods of time
Accumulates interest
Deciding Your Savings
Long vs. Short term