In an isolated village, there are oilfield miners and scientists. Oilfield workers produce oil O while scientists produce consumer goods C. Workers will choose whichever occupation gives them higher income. Workers' mining skill is measured by the number of oil barrels O they produce. Workers' scientific skill is measured by the number of consumer goods C they produce. The income of an oilfield worker is given by Io = POO where po is the price of barrel of oil. The income of a scientist is determined by Ic = PCC where pc is the price of each consumer good C. The following graph represents the relationship between acting and musical ability. equal income line In(S) In(M) a) Is there a correlation between mining and scientific skill? If so, is it positive or negative? (2 pts) b) Suppose that pc = 10po. i) What is the intercept of the equal income line? (2 pts) Your answer should be a number, which you can leave in terms of natural log. I.e., your answer can be In(x) where I is a number. Recall some useful properties of natural logarithms: c) Who will choose to become oilfield workers? (2 pts) d) Who will choose to become scientists (2 pts) e) Below are four sets of wages. 1. Income from producing oil, made by oilfield workers 2. Income from producing consumer goods, made by scientists 3. Income from producing oil, made by scientists 4. Income from producing consumer goods, made by oilfield workers i) Which wages can we observe? (2 pts) ii) Which wages can we not observe? (2 pts)