American Civics HOLT Chapter 18 Goods and Services

American Civics HOLT Chapter 18 Goods and Services Section 1: American Production Section 2: Distributing Goods Section 3: You the Consumer 1 HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 1: American Production OBJECTIVES u What are the main features of modern mass production? u How have the sources of power used by American factories changed since the early years of the country? u What makes the profit motive an effective driver of the U. S. economic system? 2 HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 1: American Production Main features of modern mass production: u Machine tools—produce parts that are exactly the same u Interchangeable parts—easily fit with other parts and are easily replaced u Division of labor—specialization in each area of production speeds the process u Assembly line—machines and workers move product through production stages 3 HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 1: American Production Changing power sources: u Early factories used water power. u Late 1700 s—Steam power replaced water power. u Late 1800 s—internal combustion engines; electricity 4 HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 1: American Production The profit motive drives the economy: u Encourages people to take risks u Encourages innovations in production and marketing 5 HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 2: Distributing Goods OBJECTIVES u How has transportation in the United States evolved, and why is it so important to the success of the U. S. economy? u What are the benefits of mass marketing? u How do manufacturers, wholesalers, and retailers work together to get products to the public? 6 HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 2: Distributing Goods Transportation and the U. S. economy: u Transportation systems move products around the u u u 7 country. This is called distribution. Railroads—created a single large market in the United States; chief source of transportation through the mid 1900 s Air transportation—carries mail and transports freight with great speed Highway system—automobiles are the leading means of transportation today HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 2: Distributing Goods Benefits of mass marketing: u Sells goods in large quantities u Self-service—saves time and labor; many customers u u u 8 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 HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 2: Distributing Goods Manufacturers, wholesalers, and retailers work together: u Manufacturers sell to wholesalers in large quantities. u Wholesalers store goods and sell them to retailers. u Retailers sell goods to the public. u Wholesalers link the factory to the retailer. 9 HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 3: You the Consumer OBJECTIVES u What does it take to be a wise consumer? u What do independent organizations and the government do to protect consumers? u What should a consumer consider in deciding between an installment plan and a charge account? 10 HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 3: You the Consumer Wise consumers u study advertisements for special sales and use coupons. u judge product quality and buy only what serves their needs. u study product labels. u compare various products, brands, stores, and prices. u read warranties and instructions. 11 HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 3: You the Consumer Independent organizations and the government protect consumers. u Government labeling requirements provide contents, health, u u 12 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. HOLT, RINEHART AND WINSTON

American Civics HOLT Chapter 18 Section 3: You the Consumer Installment plans and charge accounts: u Charge accounts—convenient; can help establish good credit; interest rates make debt harder to pay off u 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 13 HOLT, RINEHART AND WINSTON