When Canadian firms outsource accounting services to the United States, in markets for the labor of accountants,

A) equilibrium employment and the market clearing wage rate will both increase in Canada, but equilibrium employment and the market clearing wage rate will both decrease in the United States.
B) equilibrium employment and the market clearing wage rate will both decrease in Canada, but equilibrium employment and the market clearing wage rate will both increase in the United States.
C) equilibrium employment and the market clearing wage rate will both increase in Canada and in the United States.
D) equilibrium employment and the market clearing wage rate will both decrease in Canada and the United States.


Answer: B

Economics

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