Macro Economics Question

• The Assignment must be submitted on Blackboard (WORD format only) via the allocated folder.

• The due date for Assignment 1 is 28/10/2023.

• Assignments submitted through email will not be accepted.

• Students are advised to make their work clear and well-presented, marks may be reduced for poor presentation. This includes filling in your information on the cover page.

• Students must mention the question number clearly in their answers.

• Late submissions will NOT be accepted.

• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

• All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

• Submissions without this cover page will NOT be accepted.

Assignment 1 Questions: Week 4, 5 & 6

Q1: Illustrate an example of your choice and discuss consumer surplus, producer surplus, Total surplus, and deadweight loss with the help of the graphs.[2.5 Marks]

Q2: Calculate the consumer surplus, producer surplus, and total surplus in a market of airplane tickets if the Equilibrium price per ticket is SAR 160, the equilibrium Quantity is 80 tickets, the upper intercept of the demand curve on the y-axis is SAR 400 and lower intercept of the supply curve on the y-axis is zero. What will be the dead weight loss if the government imposes a tax of SAR 80 per ticket and the buyer and sellers share the tax of 50 percent each? [2.5 Marks]

Q3: What do you mean by import tariff and import quota? Take an example and discuss the difference between tariffs and quotas with the help of graphs.[2.5 Marks]

Q4: Provide the equation to calculate the GDP of a nation. Explain all four factors that contribute to the GDP calculation in detail. [2.5 Marks]