Suppose That a College Physics Experiment Goes Horribly Wrong and Releases

question 115

Multiple Choice

Suppose that a college physics experiment goes horribly wrong and releases an electronic pulse that renders all electronic equipment in the cities of Columbus, Cleveland and Cincinnati, Ohio permanently useless. No people are hurt, and no buildings are damaged. After the accident, the wages earned by Ohio workers will

• A)increase because the marginal productivities of Ohio workers will increase.
• B)decrease because the marginal productivities of Ohio workers will decrease.
• C)decrease because the marginal productivities of Ohio workers will increase.
• D)increase because the marginal productivities of Ohio workers will decrease.

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Definitions:

FIFO Method

An inventory valuation method that assumes the first items purchased or produced are the first ones sold, with inventory thus being valued at the most recent costs.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, measuring them in terms of fully completed units.

FIFO Method

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or used first.

Equivalent Units

A calculation used in process costing that converts partially completed units into a number of complete units of output, facilitating the assessment of productivity and efficiency.