Developments in the computer software industry have made it extremely easy for firms to keep their books, conduct their own audits, and fill out the various tax forms. If accountants are an input in the accounting services industry, what will likely happen in the market for accountants? Is there a difference between the short run and the long run?
We would expect the demand for accountants to fall, leaving a surplus in this labor market. As wages adjust downward, many accountants would move into other professions. In the long run, we would expect fewer college students to choose this occupation as a career.
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When the possibility for strongly efficient contracts occurs, what will happen?
A. Isoprofit lines must be horizontal. B. The union and firm negotiate over the wage level but not over the employment level. C. The labor demand curve must be vertical. D. Isoprofit lines are parabolas that open upward. E. The union and firm negotiate over the employment level but not over the wage.
If in the long run, any government policy that increases exports
A. has no impact on imports. B. makes imports become negative. C. decreases imports. D. also increases imports.