(4 marks) In general, different jobs pay different wages. One overarching reason is that different jobs have different characteristics, with wages serving to compensate for those different characteristics.

Consider two virtually identical individuals, employed in the same industry and occupation. One of the individuals works in Region A, while the other works in Region B. Assume that the individual working in Region A earns a higher wage than the individual working in Region B.

Describe four differences between Regions A and B that could each help explain the different wages paid to the two workers.

[Note: There are multiple correct ways to answer this question. Use your knowledge of inter-regional wage differences to develop your answer.]