unskilled labour equals 20. The total labour force is 35. In addition, the number of unskilled workers who are employed is twice as large as

unskilled labour equals 20. The total labour force is 35. In addition, the number of unskilled workers who are employed is twice as large as the number of skilled workers who are employed. The markets for skilled labour and unskilled labour are defined as in the lecture notes. -a) Calculate the opportunity cost of skill acquisition as a function of the probability of finding a job in the skilled sector. -b) Briefly describe the nature of the trade-off faced by an unskilled worker. -c)  Calculate the number of employed workers in the skilled sector if unskilled workers are -paid just enough to forego skill acquisition. Show ALL steps. -d) Briefly explain why neither of the two labour markets is in equilibrium if the probability of finding a job in the skilled sector is 80 %. -e) Briefly discuss the validity of the statement: “New jobs in the skilled sector increase unemployment in the skilled sector if the probability of finding a job in the skilled sector is 80 %.”

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