Figure 12-2 -The Demand D₁ and Short-Run Supply SSR of Accountants Is

question 194

Multiple Choice

Figure 12-2

-The demand D₁ and short-run supply SSR of accountants is indicated in Figure 12-2.Which of the following would most likely shift the demand for accountants from D₁ to D₂?

• A)an increase in the number of accounting majors in college
• B)enacting legislation that increases the complexity of personal and business tax returns
• C)high wages for accountants
• D)a reduction in the wages of bookkeepers,a substitute resource for accountants

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and hourly labor.

Proposed Project

A plan or proposal for a course of action, especially in a business or scientific context.

Fixed Costs

Costs that do not fluctuate with changes in production volume or sales, such as rent, salaries, and insurance.

Production

The process of creating, manufacturing, or enhancing products for sale.