Chapter 18 Goods and Services
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Transcript of Chapter 18 Goods and Services
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Chapter 18Chapter 18
Goods and ServicesGoods and Services
Section 1:Section 1: American ProductionAmerican ProductionSection 2:Section 2: Distributing GoodsDistributing GoodsSection 3:Section 3: You the ConsumerYou the Consumer
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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?
Section 1:Section 1: American ProductionAmerican Production
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Production of Goods and Services from Resources [01:38]
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Mass Production and Power [02:33]
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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
Section 1:Section 1: American ProductionAmerican Production
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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
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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
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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
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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??
Section 2:Section 2: Distributing GoodsDistributing Goods
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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
Section 2:Section 2: Distributing GoodsDistributing Goods
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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 or fewer items must be weighed or
measuredmeasured 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
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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.
Section 2:Section 2: Distributing GoodsDistributing Goods
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Question: What are the benefits of mass marketing?
SECTION 2
efficient inexpensive
Benefits of Mass Marketing
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How Does Advertising Work? [04:08]
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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?
Section 3:Section 3: You the ConsumerYou the Consumer
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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.
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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.
Section 3:Section 3: You the ConsumerYou the Consumer
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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
Section 3:Section 3: You the ConsumerYou the Consumer
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Being an Informed Consumer [03:53]
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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
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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?