Which of the following is true regarding the marginal product of labor?

Select one:

a. It declines as more capital is used.

b. It rises as the product price falls.

c. It rises as more labor is used.

d. It declines as more labor is used.

 Which of the following is true?

Select one:

a. Workers with more education tend to earn about the same as workers with less education.

b. Workers with more education tend to earn more, and this effect has become stronger over time.

c. Workers with more education tend to earn more, and the size of this effect has remained constant over time.

d. Workers with more education tend to earn more, but this effect has become weaker over time.

If unions become too powerful, they can reduce wages in an economy by:

Select one:

a. competing among themselves for workers.

b. causing inflation rates to rise too quickly.

c. widening the gap between the wages of unionized and non-unionized workers.

d. shutting down entire industries and reducing economic efficiency.

Restrictions that make it hard for foreign medical school graduates to practice in the U.S. or that prevent nurse practitioners from competing with physicians:

Select one:

a. might increase physician wages but definitely increase safety.

b. definitely increase both safety and physician wages.

c. might increase safety but definitely increase physician wages.

d. significantly increase neither safety nor physician wages.

The American Medical Association is essentially a union that attempts to:

Select one:

a. restrict the supply of physicians to reduce their wages.

b. increase the supply of physicians to raise their wages.

c. restrict the supply of physicians to raise their wages.

d. increase the demand for physicians to raise their wages.

Topanga Group began operations early in 2018. Inventory purchase information for the quarter ended March 31, 2018, for Topanga’s only product is provided below. The unit costs include the cost of freight. The company uses a periodic inventory system.

Date of PurchaseUnits Unit CostTotal CostJan. 72,000 $2.00  $4,000 Feb. 1618,000  3.00   54,000 March 2222,000  4.00   88,000 Totals42,000      146,000 

Sales for the quarter, all at $6 per unit, totaled 27,000 units leaving 15,000 units on hand at the end of the quarter.

Required:

1. Calculate Topanga’s cost of goods sold for the first quarter using:

1. FIFO
2. LIFO
3. Average cost

2. Calculate Toponga’s gross profit ratio for the first quarter using FIFO, LIFO, and Average cost.

3. Comment on the relative effect of each of the three inventory methods on the gross profit ratio.