ion & decide how to use them within legal limits.3. Profit: money left after all the costs of production – wages, rent, interest, & taxes have been paid.4. Profit incentive: desire to make money that motivates people to produce & sell goods & services that others ant to buy.5. Competition: rivalry among producers or sellers of similar goods to win more business by offering the lowest prices or better quality.Section 31. Standard of living: material well-being of an individual, group, or nation measured by the average value of goods & services used by the average citizen during a given period of time.Chapter 3Section 11. Disposable income: income remaining for people to spend or save after all taxes have been paid.2. Discretionary income: money income a person has left to spend on extras after necessities have been bought.Section 21. Generic brand: general name or a product rather than a specific brand name given by the manufacturer.Section 31. Ethical behavior: acting in accordance with moral & ethical convictions about right & wrong.Chapter 4Section 11. Principle: amount of money originally borrowed in a loan.2. Interest: amount of money the borrower must pay for the use of someone else’s money.Section 21. Commercial bank: bank offering wide range of services; main functions are to accept deposits, lend money, & transfer funds among banks, individuals, & businesses.2. Credit union: depository institution owned & operated by its members to provide savings accounts & low-interest loans to its members only.3. Debit card: credit device used to make cashless purchases of goods & services.Section 31. Credit rating: rating of the risk involved in lending money to a specific person or business.2. Collateral: something of value that a borrower lets the lender claim if a loan is not repaid.3. Unsecured loan: loan guaranteed only by a promise to repay it.Section 41. Usury: law restricting the amount of interest that c...
