Civics Chapter 18 Goods & Services

Name that transportation: Now carry all first-class mail between US cities located over a certain distance apart

Airlines

What are Goods & Services?

All the things that is produced by a country's economy

Installment plans

Allows consumers to buy goods without paying the full amount when they make their purchases. The consumer puts down a down payment and the rest of what the consumer owes is called the balance. The balance is then paid in equal installments for a certain period of time. (Mortgage)

Free-market economy

Allows people willing to take risks by offering them the possibility of making a profit

Internet Sellers

Consumers shop online viewing goods/services on their computer. (Buying clothes, books, etc.) Consumers often seek insurance quotes, automobile prices, etc. online.

What is all money borrowed, except home financing.

Credit

Interest rates paid on unpaid _____can be very high.

balances

Who/what spend billions of dollars trying to get us to buy their products. They run ads in newspapers, magazines, internet, billboards, radio, & TV. They often create slogans people will remember?

business

Learn when/where to buy a product. As consumers we play an important part in the _____, but we must learn to be responsible shoppers

economy

Retail services

Malls, online purchases, entertainment, movies, music, etc

What is an advantage of using rivers to transport goods?

Manufactures located close to major rivers, shipping can be fast & inexpensive

Selling goods in large quantities often requires what?

Mass marketing

Development of _______ sped transporting goods up a bit, but an efficient economy would need more effective ways to get products from the manufacturer to the consumers

railroads

Each worker is highly skilled at a ____ job. An assembly line moves the product through states of production until the product is complete

specialized

Your credit card information could be _______ by using the phone or internet purchasing.

stolen

What (type of automobile) are the leading means of transporting goods in this country?

trucks

Personal services

They are performed directly on consumers (medical care, personal fitness, yoga, golf lessons, etc.)

Goods

Things that are manufacture or made & that consumers (you) can buy or own (food, iPad's, iPod's, buildings, airplanes). You can see & touch.

Who invented electricity?

Thomas Edison

What is the key to mass production

To develop machine tools that can produce exactly identical parts

US has about ___ million miles of roads

4

What % of families do most of their traveling in personal vehicles?

85%

Advertising

Informs people about products & tries to persuade consumers to buy the products. Often makes the difference between the success/failure of a product. Goal of advertising is to give the consumer a reason to buy their product.

Some cards may have an ____ ____ _____.

annual card fee

If you miss a payment there can be _______

penalties

Name 4 problems of transporting goods by airlines

1. Can not carry as much heavy cargo at the same time 2. Large cargo planes cannot land at small airports 3. Higher prices due to aviation fuel 4. Increased security due to 9/11 terrorist attacks

Name 3 ways of paying immediately for a product

1. Cash 2. Checks 3. Debit cards

Name 2 ways of paying later

1. Charge acct. 2. Credit cards

Highway transportation depends on what 2 things?

1. Good roads 2. A steady supply of fuel

Name 4 types of services

1. Health 2. Educational 3. Personal 4. Information

What are the 3 important features of marketing?

1. One price system 2. Self-service 3. Standard packaging

Name 4 ways of transportation toady

1. Railroads 2. Airlines 3. Highways 4. Rivers

What 3 ways can consumers get the most for their $'s by?

1. Studying advertisement 2. Using coupons 3. By watching for sales

Name 3 measures of how our economy is performing

1. Unemployment rate 2. Business failure rate 3. Amount of tax revenue American business/citizens produce

Charge account

A form of credit that stores grant to many of their customers

Credit cards

A form of credit used by banks & other major lending institutions & accepted by most businesses worldwide

Brand

A name given by the maker to a product or range of products

Consumer

A person who buys or uses goods & services

Generic product

A product that does not have a manufacturer's name or brand

Debit card

A small card similar to a credit card that operates the way that checks do, deducting money directly from a bank account

Standard packaging

Adds to the efficiency of self service (crackers, sugar, etc)

Name that transportation: Much cheaper to ship items by railroad or by truck

Airlines

Self-service

An efficient & inexpensive way to sell goods because it saves time & labor

What is the leading means of transportation in the US?

Automobiles

If you are not satisfied with a good/service you have purchased you can contact the local _____ ______ _______. They give advice/assistance to people who believe they been cheated/treated unfairly by a business.

Better Business Bureau

How were early goods delivered?

By horse & carriage/boat (it was very slow & time consuming)

What was the source of power that contributed to modern mass production?

Electricity

Federal Trade Commission (FTC)

Has the power to bring to court any company anywhere in the U.S. that uses false or misleading advertising/false labeling.

Repair services

Performed on goods you own usually to repair them, or keep them in good working condition or improve them (auto repair, auto maintenance, heat maintenance)

Once price system

Prices are stamped or bar-coded (Universal Product Code, UPC). This code contains information about the product & allows the cashiers to ring up items quickly. Bar codes can also keep track of products during shipping, inventory, keeping shelves stocked

Wholesalers & Retailers

Products pass through several hands when moving to a factory to finally the consumers. Factories often sell goods in large quantities to a wholesaler (a business who owns a large warehouse where goods are stored). The wholesaler then sells it to the retailer.

Services

Products that are not physical, things that people do. You get the benefit of the service but do not own anything (doctors, dentist, hairdressers, etc)

Name that Transportation: Gave business people a mean of rapid travel & communication

Railroads

Name that transportation: Brought new goods to every American city

Railroads

Name that transportation: Carry bulky cargo, such as coal & grain

Railroads

Name that transportation: In the 1960s/1970s many railroads went out of business due to other competing means of transportation (truck, buses, cars, planes)

Railroads

The Nutrition Labeling & Education Act of 1990

Required food companies to list serving sizes, fat content, cholesterol, etc. contained in each serving.

Fair Packaging & Labeling Act

Requires businesses to supply certain info., package contents, & the weight or quantity of the items in the pkg.

Name an example of a combination of a good & service & tell why

Restaurant- provides the food, but also cleans up & food preparation

Other Services

Retail services- Malls, online purchases, entertainment, movies, music, etc

What has become the fastest growing parts of the US economy?

Service sector

Dept. of Agriculture

Sets nationwide standards, inspects & grades meats & poultry.

What is a disadvantage of using rivers to transport goods?

Subject to the weather

Where was mass production 1st developed?

The US, but is now used around the world

Innovation

The development of a new product, system, or process that has wide-ranging effects on the economy

Profit

The difference between the total cost of production & the total revenues received from buyers

Gross domestic product (GDP)

The market value of all the goods & services produced annually in the United States

Marketing

The process of making goods & services available to consumers & convincing them to buy the product

What does America's production of goods depend on?

The process of mass production

Mass marketing

The process of selling a good or a service in which the same product, price, promotion, & distribution is used for all consumers in a particular market

Mass production

The rapid production by machine of large #'s of identical objects

True or False: Many people will only buy brand names, they believe from past experience that the brand name is of good quality

True

True or False: Some people buy generic products. They are often less expensive than the brand name products

True

True or False: Today mass production is an essential part of large-scale production (automobile plant, bakery)

True

Checks

Written/signed order to a bank to pay a sum of money from a checking acct. to a person/company.

What does a good credit rating mean?

You pay your bills on time is important for obtaining any bank loan (mortgage, auto, boat, etc.)

Wise shoppers choose goods/service at the price/quality that best suits their _____

needs