Assume that workers are of the same race and either male or female.Male and female workers possess the same stock of human capital and hence they are equally productive.The wage rate for male workers is $10 per hour and for female workers the wage rate is $9 per hour.
-Refer to the information above.If Carl and Julia pick city A,then household income is __________ and Julia's earnings are __________.

Question

Quizplus · Accepted Answer

The household income is maximized because Carl and Julia are choosing the city with the highest possible combined income. However, Julia's earnings are minimized because she is earning less than her male counterpart despite having the same productivity.

Assume That Workers Are of the Same Race and Either