with another employer who offers better pay. This market pressure could cause the discriminatory

business to behave better.

10. No. The earnings gap does not prove discrimination because it does not compare the wages of men and

women in the same job who have the same amounts of education, experience, and productivity.

11. If a large share of immigrants have relatively low skills, then reducing the number of immigrants would

shift the supply curve of low-skill labor back to the left, which would tend to raise the equilibrium wage for

low-skill labor.

Chapter 15

1. a. Poverty falls, inequality rises.

b. Poverty rises, inequality falls.

2. Jonathon’s options for working and total income are shown in the following table. His labor-leisure

diagram is shown in the figure following the table.

Number of Work Hours Earnings from Work Government Benefits Total Income

1,500

1,200

900

600

300

0

$9,000

$7,200

$5,400

$3,600

$1,800

$0

$1,000

$2,800

$4,600

$6,400

$8,200
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