Signaling in the Labor Market: In answering Questions 9-12 please refer to Figure 9-3, which shows the present value of lifetime earnings (PVE) firms are willing to offer to workers who have attained different levels of education. Those workers who have completed 16 years or more of education (4 or more years after high school) will be offered a wage leading to a present value of lifetime income of $2,000,000 (PVE2), while those completing less than 16 years of education will be offered a wage leading to a present value of lifetime income equal to $1,000,000 (PVE1). Lines CA and CB show the total cost of different levels of education for two types of workers. Type A workers are low-productivity workers while type B workers are high-productivity workers. 32 CA 30 28 26- 24 22 PVEz 20 - 18- PV ($100,000) 16 - d 14 - 12 - 10- PVE, 8- CB C ON 13 14 15 16 17 18 19 20 Education (years) Figure 9-3 Please do explain. The optimal level of education for a type A worker is: a. 12 years. b. 14.5 years. c. 16 years. d. 20 years. 2. The optimal level of education for a type B worker is: a. 12 years. b. 14.5 years. C. 16 years. d. 20 years. 3. Is it right to conclude that making 16 years of education the qualification for the higher paying job will effectively distinguish high-productivity workers from low-productivity workers? Based on the figure, what is the reason? 4. From society's point of view, the optimal level of education to distinguish high-productivity workers from low- productivity workers would be a. slightly more than 12 years. b. slightly more than 14.5 years. . 16 years. d. when education only has signaling value, there is no optimal level from society's point of view