Answer the following structured questions effectively. Connect your discussions and explanations based on your understanding and apply critical and logical thinking to be able to produce an effective and interesting answers for each assessment questions provided.
- Land labor capital and entrepreneur are the four factors of production. Basically, land, labor and capital used as input factors in the production process. Using the input factors in the production process, how can you explain the concept of productivity?
- In simple sense, the opportunity cost of a choice is what you gave up in order to get something (Nash, 2020). Produce at least two examples of Opportunity cost principle in the real-life scenario.
- Example 1:
- Example 2:
- Why do suppliers are fast to respond to an increase of price but slow when prices of their commodities are low. Please link the concept of inflation and deflation on your explanations.
- When the demand of a commodity increases in the marketplace, considering that you are a supplier of such commodities, what decision making will you take? Explain your answer using 70 words.
- Analyze the article below and give your responses to the following questions which follow.
- Elasticity is a measure of the responsiveness of demand – and here we will look at three separate measures of responsiveness: how demand responds to changes in income (income elasticity), how demand responds to changes in prices of other goods (cross-price elasticity), and how demand responds to changes its own price (own-price elasticity) Web.uri.edu. (2011). Analyze the scenario below and answer the question which follow.
3.1. Example 1:
3.2. Example 2:
The article: Increased investment to boost Omanâ€™s tourism sector
The potential for tourism development projects to contribute to the Omani economy goes beyond their direct benefits, according to Ahmed Dabbous, CEO of Muriya Tourism Development, a property developer focused on the leisure segment.
â€œThe economic multiplier effects of hotel and tourism developments are significant,â€ he told OBG. â€œApart from job creation and infrastructure investment, we see significant engagement with small and medium-sized enterprises, as well as in the local economies where the projects are located.â€
According to a government prospectus from June, at least 39 major tourism projects are at some stage of design, construction or tendering across the country.
Oxford business group (2018)
5a. Thinking like an economist, how can you explain the concept of multiplier effect? Use 40 words.
The City of Calgary has now released details on how many part-time and casual workers are being laid off because of COVID-19. Most employees work in the recreation department including swim instructors, arena and athletic park staff, aquatics and fitness staff. The cityâ€™s recreational facilities have been closed and programs halted as a result of the pandemic (White, 2020). Considering that these laid off employees are enjoying doing their shopping in charity stores due to huge laid off discounts.
6a. Relate the newsletter content to the concept of elasticity. You can use the above definition of elasticity as your guide to develop an effective answer. Use 50 words.
â€œOman is pressing ahead with a number of new developments in its tourism sector as part of a drive to diversify its economy amid a backdrop of sustained low global energy pricesâ€ (Oman Tourism, 2016), however, because of the unprecedented outbreak of COVID-19, Omanâ€™s tourism market hits its market. Relate in the form of a brief report of the economic impact of COVD-19 to Omanâ€™s tourism market. Use 150 words.