Macroeconomics ECON 201

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

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?

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.

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

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