A survey conducted by the American Federation of Teachers found that the average salary of K-12 (kindergarten through 12th grade) teachers in 2007 in the U.S. was $51,009. The same survey reported that the average annual salary for workers in 23 occupations requiring education (a bachelor’s degree) similar to that of a K-12 teacher was $72,678.Some of these occupations and their reported annual salaries appear in the following table.
Average 2007 Salaries for Selected Occupations
Occupation Average Salary
Accountants and auditors 1. $63,180
Athletic trainers 2. 40,720
Child, family and school social workers 3. 41,920
Computer software engineers, systems software 4. 90,780
Financial managers 5. 106,200
• Why would someone want to earn a bachelor’s degree in order to be hired as an athletic trainer or a school social worker when he or she could earn more than twice as much as a financial manager, a position that also requires a bachelor’s degree?
b. Assume that in response to recent financial scandals, Congress passes a law that significantly increases the financial reporting and auditing requirements of U.S. corporations. The new law causes a large increase in the demand for accountants and auditors. Explain what would happen on a graph that illustrates the impact this has on the market for K-12 teachers
