Question

Mohammad earns $40,000 per year as an accountant for a bank in Columbus Mississippi. He learns that a branch of the bank is opening in Honolulu Hawaii, and the accounting position at that location pays $35,000. Keeping in mind that the cost of living is not lower in Hawaii (in fact, it is higher), why might the salary be lower in Hawaii than Mississippi? O living in Hawaii compensates for the lower salary O banks in Hawaii must be more competitive than those in Mississippi O wages and salaries exhibit mean reversion over time O labor markets are not competitive and labor is not mobile

          Mohammad earns $40,000 per year as an accountant for a bank in
Columbus Mississippi. He learns that a branch of the bank is opening
in Honolulu Hawaii, and the accounting position at that location pays
$35,000. Keeping in mind that the cost of living is not lower in
Hawaii (in fact, it is higher), why might the salary be lower in Hawaii
than Mississippi?

O living in Hawaii compensates for the lower salary

O banks in Hawaii must be more competitive than those in Mississippi

O wages and salaries exhibit mean reversion over time

O labor markets are not competitive and labor is not mobile

Mohammad earns 40,000 per year as an accountant for a bank in
Columbus Mississippi. He learns that a branch of the bank is opening
in Honolulu Hawaii, and the accounting position at that location pays35,000. Keeping in mind that the cost of living is not lower in
Hawaii (in fact, it is higher), why might the salary be lower in Hawaii
than Mississippi?

O living in Hawaii compensates for the lower salary

O banks in Hawaii must be more competitive than those in Mississippi

O wages and salaries exhibit mean reversion over time

O labor markets are not competitive and labor is not mobile

Added by Steven V.

Question

Please give Ace some feedback