1. Speculate on how you think A. Marshall would respond to the following question: Do pearls have value because people dive for them, or do people dive for pearls because pearls have value? Why? [7 marks] 2. Explain, using J.M. Keynes's concept of the marginal efficiency of capital, how it is possible for investment spending to decline, even though the market rate of interest remains unchanged. [8 marks]