A Worker Can Always Build a Chair in Four Hours

question 202

Multiple Choice

A worker can always build a chair in four hours.If a chair sells for $40 in a perfectly competitive market, then the equilibrium wage per hour in a perfectly competitive labor market is

• A)$4.
• B)$10.
• C)$40.
• D)$160.

---

Definitions:

Loan Payments

Regular payments made to repay borrowed money, including both principal and interest components.

Loan Papers

Documents associated with a loan, including the agreement, terms and conditions, and any collateral-related paperwork.

Certificates Of Deposit

A type of federally insured savings account that has a fixed interest rate and fixed date of withdrawal, known as the maturity date.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accrued interest over four quarters in a year.