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QUESTION S Consider the following scenario: 1. Worker per-period productivity without training (H): $10'000 2. Bi-dimensional Training: Training in Java (if fully utilized) increases productivity

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QUESTION S Consider the following scenario: 1. Worker per-period productivity without training (H): $10'000 2. Bi-dimensional Training: Training in Java (if fully utilized) increases productivity by $5,000. Training in Accounting Law can increase productivity up to $10,000 3. Training is used at the current firm as follows: 10% of the increase in productvity from the training in Java is utilitzed, while 90% of the value of the training in Accounting Law is utilized 4. Direct cost of training and foregone production during training (C+F): $8'000 Ignore discounting for simplicity, and consider just 2 periods (training occurs today, and the worker is trained in period 2). Suppose that at an outside firm training is valued as follows: 1. 90% of the increase in productvity from the training in Java is utilitzed, while 0% of the value of the training in Accounting Law is utilized 2 The outside firm pays workers their full productivity Which of the following compensation schemes is such that the training opportunity is taken, and the surplus generated by it is equally split between worker and firm? w1=$7000, w2=$14,500 w1=$6750, w2=$14,000 Ow1=$6250, w2=$14,500 w1=$5,500, w2=$14,500 QUESTION 6 You are a hiring manager, and you are designing a job posting for your next hire. The contract that you offer features: . 1 year probationary period; up or out after probation 4 extra years (Offered conditional on good performance during probationary period) The likelihood that a good candidate will get retained after the probationary period is 80%, while the probability that a bad candidate will get offered retention is 10%. A good candidate has a per-year outside option of $100'000; a bad candidate has a per-year outside option of $70'000. Which of the following options allows for an effective screening of candidates? O wprobation = $70,000 wpost probation= $110,000 wprobation = $70,000 wpost probation= $200,000 wprobation = $60,000 wpost probation= $200,000 O wprobation = $50,000 wpost probation= $200,000

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