CIVICS IN PRACTICE
HOLT
Chapter 18
Goods and Services
Section 1: American Production
Section 2: Distributing Goods
Section 3: You the Consumer
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HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
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.
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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?
HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
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
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HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
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
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HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
Section 1: American Production
The profit motive drives the economy:
 Encourages people to take risks
 Encourages innovations in production and
marketing
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HOLT, RINEHART
AND
WINSTON
SECTION 1
CIVICS IN PRACTICE
HOLT
Question: What are the main features of
modern mass production?
Three Main
Features of Mass
Production
division
of labor
machine
tools
standard
parts
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HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
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?
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HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
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 mid1900s
 Air transportation—carries mail and transports freight
with great speed
 Highway system—automobiles are the leading means of
transportation today
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HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
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
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HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
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.
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HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
SECTION 2
HOLT
Question: What are the benefits of mass
marketing?
Benefits of Mass
Marketing
efficient
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inexpensive
HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
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?
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HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
Section 3: You the Consumer
Wise consumers
 study advertisements for special sales and use
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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.
HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
Section 3: You the Consumer
Independent organizations and the
government protect consumers.
 Government labeling requirements provide contents, health,
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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
CIVICS IN PRACTICE
HOLT
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
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HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
SECTION 3
HOLT
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
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help consumers when
treated unfairly
HOLT, RINEHART
AND
WINSTON
CIVICS IN PRACTICE
HOLT
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?
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HOLT, RINEHART
AND
WINSTON