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Upon graduation, Ellie had two job offers. The jobs were identical in every way with two exceptions. ...

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Upon graduation, Ellie had two job offers. The jobs were identical in every way with two exceptions. ...

Upon graduation, Ellie had two job offers. The jobs were identical in every way with two exceptions. One job was located in San Diego, CA and offered an annual salary of $50,000. The other job was located in Omaha, NE and offered an annual salary of $60,000. The salary difference is due to

▸ compensating differentials.

▸ discrimination.

▸ transfer payments.

▸ the firm in California had a higher demand for workers than the firm in Nebraska.

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

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