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:

Depreciation Calculation

The process of allocating the cost of a tangible asset over its useful life.

Placed In Service

The point in time when an asset is ready and available for its intended use, often marking the start of depreciation or amortization for accounting purposes.

Depreciable Cost

The total cost of an asset that is subject to depreciation, including purchase price and any additional expenses to bring the asset to its intended use, minus salvage value.

Straight-Line Depreciation

An approach to apportion the value of a tangible asset across its productive years in uniform yearly sums.