If a person without a job is not actively looking for work, that person is classified as not being in the labor force.

Real income equals a household's income

A) in terms of the quantity of goods the household can buy. B) multiplied by the prices of the goods it buys. C) divided by the prices of the goods it buys. D) multiplied by the relative prices of the goods it buys.

The figure above shows the situation facing Smart Digit, Inc, a firm in monopolistic competition that produces calculators. What is the firm's profit-maximizing price?

A) $12 B) $10 C) $8 D) $4