Q1. A sceptic says 'marketing research and brand management are redundant. If a company wants to find out what customers want it should simply look at what they are already buying'. Do you agree with the comment? Explain! (hint under what conditions are firms able to earn economic profit)

Q2. State the law of diminishing marginal returns. EXPLAIN why the marginal cost of production must increase if the marginal product of a variable resource is decreasing.

Q3. For each of the following, indicate if the person would be classified as unemployed, employed or not in the labour force and why

a) a 65 year old man who left his job and is now working as a volunteer 10 hours a week

b) a university graduate who has not been able to find a position using her skills and is working as a wait-person for 30 hours a week

c) a manufacturing worker who is out of a job and has given up searching for a job

Q4. Suppose 180000 people are employed, 20 000 unemployed and 50 000 people are not in the labour force but are of working age. Calculate the labour force participation rate.