1. Chapter 18 Goods and Services
American Civics
4/2/2017
Chapter 18 Goods and Services
Section 1: American Production
Section 2: Distributing Goods
Section 3: You the Consumer
Chapter 18

2. Section 1: American Production
The Main Idea
American 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?

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

4. Mass Production and Power [02:33]

5. Main features of modern mass production:
Section 1: American Production
Main features of modern mass production:
Machine tools—produce parts that are exactly the same
Interchangeable parts—easily fit with other parts and are easily replaced
Division of labor—specialization in each area of production speeds the process
Assembly line—machines and workers move product through production stages

6. Changing power sources:
Section 1: American Production
Changing power sources:
Early factories used water power.
Late 1700s—Steam power replaced water power.
Late 1800s—internal combustion engines; electricity

7. The profit motive drives the economy:
Section 1: American Production
The profit motive drives the economy:
Encourages people to take risks
Encourages innovations in production and marketing

8. Three Main Features of Mass Production
SECTION 1
Question: What are the main features of modern mass production?
Three Main Features of Mass Production
machine tools
division of labor
standard parts

9. Section 2: Distributing Goods
The Main Idea
Producing 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?

10. Transportation and the U.S. economy:
Section 2: Distributing Goods
Transportation 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-1900s
Air transportation—carries mail and transports freight with great speed
Highway system—automobiles are the leading means of transportation today

11. Benefits of mass marketing:
Section 2: Distributing Goods
Benefits of mass marketing:
Sells goods in large quantities
Self-service—saves time and labor; many customers can shop at the same time
Standard packaging—fewer items must be weighed or measured
One-price system—prices are stamped onto the products; eliminates most bargaining
Bar codes—enable stores to keep up with inventories and collect information

12. Manufacturers, wholesalers, and retailers work together:
Section 2: Distributing Goods
Manufacturers, 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.

13. Benefits of Mass Marketing
SECTION 2
Question: What are the benefits of mass marketing?
Benefits of Mass Marketing
efficient
inexpensive

14. How Does Advertising Work? [04:08]

15. Section 3: You the Consumer
The Main Idea
As 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?

16. Wise 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.

17. Independent organizations and the government protect consumers.
Section 3: You the Consumer
Independent 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.

18. Installment plans and charge accounts:
Section 3: You the Consumer
Installment plans and charge accounts:
Charge accounts—convenient; can help establish good credit; interest rates make debt harder to pay off
Installment 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

19. Being an Informed Consumer [03:53]

20. SECTION 3
Question:
What do independent organizations and the government do to protect consumers?
set and enforce regulations
publish product comparisons and reports
How Independent Organizations and Government Help Consumers
publish consumer information
help consumers when treated unfairly

21. 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?