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INSTRUCTIONS
Covering Chapter 11 & 12 – Hypothetical scenarioSuppose that there are two cities – Chicago, IL and Omaha, NE. Economists report that wages in Chicago is 40% higher than those in Omaha. Develop a two-page essay discussing what might have caused this. In your essay, you are required to address the following questions.
What factors led to higher wage in Chicago than in Omaha? Discuss this from an economic perspective, and do not just share your opinions/thoughts.
How might migration of new workers to Omaha change wage differentials between mentioned two cities?
Can wage differentials be justified from a biblical perspective?