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Economics Assignment On Real Life Scenarios

Task: SCENARIO ONE: COVID-19 Outbreak: Video Conferencing Demand Rises due to Social-Distancing Video conferencing software and video chat applications have seen a huge surge in demand as a result of the COVID-19 pandemic. In March, video conferencing apps saw a record 62 million downloads. Much of the growth is due to increasing adoption of platforms like Google Hangouts Meet, Microsoft Teams and Zoom as businesses switched to remote working to limit the spread of the virus. Zoom was the most downloaded video conferencing app globally in February and March and it continues to see a high number of downloads across the US, EU and UK. Social-distancing has also meant that people have had to move their social lives online. There has been an increase in the numbers using video conferencing software to connect with friends and family as well as to attend virtual quizzes and exercise classes. The House party app has seen massive growth from users looking to connect with friends. Downloads have been particularly high in European countries affected by lockdowns. In Spain, House party downloads during the week ending March 21st, increased by 2,360 times the average weekly number for Q4 2019. Read the above scenario and prepare a report on economics assignment answering the following questions:- Define demand and supply. Use the example of video conferencing software to distinguish between movements. Use the example of video conferencing software to distinguish between a movement along and a shift of the demand function. Use appropriate diagrams to explain your answer. As indicated in the above scenario, ‘video conferencing software and video chat applications have seen a huge surge in demand as a result of the COVID-19 pandemic’. By using an appropriate diagram explain this statement. By referring to the diagram presentation for the above question explain the main effects on the equilibrium price of video conferencing software following the COVID-19 pandemic. After carrying out research, identify and explain by the use of diagram/s another scenario which experienced changes in demand and consequently equilibrium price due to COVID-19 pandemic. SCENARIO TWO: COVID-19 Outbreak: The Malta International Airport and Air Malta In March Malta suspended all inbound flights but the ban did not apply to ferry flights, cargo flights, humanitarian flights and repatriation flights. "As of 21 March 2020, Malta International Airport will remain operational to facilitate the arrival and departure of cargo, humanitarian, and ferry flights until further notice," it said. It urged people to refrain from visiting the airport unless they are travelling in order to limit crowding and allow for social distancing to be observed. Read the above scenario and answer the following questions:- Identify the market structures which the Malta International Airport and Airmalta operate in. Justify the above answer by explaining the features of each market structure. Distinguish between the two market structures. After carrying out research depict a diagram for each market, indicating the type of profits gained in the short run. Compare these two market structures to perfect competition. SCENARIO THREE: COVID-19 Outbreak: Unemployment “Jobless people registering for work increased by 353 last month as the first tangible impacts of COVID-19 started being felt on the economy. The number of people registering for work with Jobsplus, a government agency stood at 2,125 in March, an increase of 20% over the previous year.” Read the above scenario and answer the following questions:- By using local references define the term ‘Unemployed’. The COVID-19 pandemic led to an increase in unemployment. Explain whether this was an increase in Equilibrium or Disequilibrium Unemployment. Justify your answer by defining these two types of unemployment. Present a diagram for each of the two types of unemployment. Explain TWO main measures implemented by government in order to reduce the type of unemployment identified in part (b) above. SCENARIO FOUR: COVID-19 Outbreak: The effects on GDP and Government Deficit The pace of economic activity decelerated sharply in the first three months of this year on the back of the COVID-19 pandemic, the Central Bank of Malta said on Friday. Real gross domestic product rose by just 0.5% in annual terms, after increasing by 4.8% in the preceding quarter, according to its quarterly review. However, this annual growth in Malta fared well when compared to the euro area, where GDP contracted by 3% during the same period. Malta reported its first coronavirus case on March 7 and by the end of that month many parts of the economy had been effectively shut down. The strong decline in domestic demand as a result of weaker activity in COVID-19-hit sectors was the key cause for the slowdown in growth. At the same time, the contribution of net exports also declined but remained positive. When it comes to public finances, the government deficit widened significantly compared to the corresponding period a year earlier, as revenue fell and expenditure rose. Read the above scenario and answer the following questions:- Define ‘Gross Domestic Product’. By referring to the expenditure method of measuring Gross Domestic Product, explain the main reasons for a decline in Malta’s economic growth rate following COVID-19. The above scenario refers to the real Gross Domestic Product. Distinguish this measure with the nominal Gross Domestic Product and explain why the former is a more realistic measure than the other measure. In the scenario it is indicated that the government deficit widened. By carrying out research fill in the following table and comment on the trends of each of the Malta government deficit and government debt over the years. By using the answers to question 4 above explain how this abides to the European Union Maastricht Criteria.


Subject Name: Economics

Level: Postgraduate


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