5 PART A. You are required to answer 3 true/false questions in this part. Determine whether each statement is TRUE/FALSE or UNCERTAIN. Your mark will be determined by the logic of your argument. Question A.2 Suppose that the on-the-job training at Firm A is general in nature and the on-the-job training at Firm B is specific. Suppose also that workers have the same levels of the value of marginal product of labour in the post-training period at both firms. Then the human capital theory predicts that in the post-training period the workers at Firm A will earn a higher net wage and, hence, are likely to have a lower-quit rate than the workers at Firm B. (7 marks) Question A.3 The Victorian government recently announced an initiative of abolishing the education fees for those who study nursing, aiming to increase the number of nurses working in the hospitals in the future. However, the empirical findings on hospital production (discussed in week 8's lecture) suggest that this initiative will not increase the hospital capacity at all, unless the number of medical doctors is also set to be increased