Question 1

In March 2021 the Australian Commonwealth Government announced the Tourism Aviation Network Support (TANS) scheme aimed at supporting the domestic aviation industry through the downturn resulting from COVID-19. The media release from the Prime Minister is available at:

https://www.pm.gov.au/media/tourism-and-aviations-flight-path-recovery

The scheme provides half price airfares to a number of domestic destinations.

Part (a)

Illustrate on a diagram of the domestic airline market, the likely impact of the policy on the market equilibrium for domestic air travel. You do not need numbers on your diagram or in your analysis as the emphasis required is on theoretical analysis of this policy. On your diagram make sure you highlight:

i) The price paid by consumers both before and after the policy has been introduced.

ii) The price received by airline operators both before and after the policy has been introduced.

iii) The quantity of domestic travel before and after the policy has been introduced.

iv) The cost of the policy to the government.

v) The likely welfare gains and losses resulting from this policy.

Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the following questions: Year Nominal GDP Real GDP GDP Deflator 2009 $500 100 2010 $551.2 106 2011 $600.6 $546 2012 $600.6 120 What is the value of nominal gross domestic product (GDP) in 2009? $50,000 million $500 million O $400 million O $600 million O $100 millionQuestion # 1 (7 marks ) If you have the following data that representing an economy of a country as follow: transfer payments Indirect taxes 450 Wages 2395 social security deductions 250 personal taxes (direct taxes) 420 Imports 140 Rent 145 income of foreigners inside Jordan 490 Exports 250 retained (undistributed) profit 120 Interest 360 Depreciations transfer payments 500 income of the Jordanian from abroad 240 Gross private investment expenditures 850 corporate taxes 320 Government expenditures 940 Profit 570 According to the above information, answer the following questions: 1. find the following values related to GDP accounts : . Gross domestic product (GDP) = . Net domestic product (NDP) = Domestic income (DOR) = . Gross national product (GNP) = . Net national product (NNP) = National income (NI) = Personal income = . Disposable personal income (DPI) = . household savings (S) = . Cash Dividends ( distributed profit) = 2. Find the Gross Domestic Product (GDP) according to income approach? (show me the steps) 3. Prepare the government budget and show the result of it? 4. Prepare the national savings and national investments accounts?QUESTION 5 a) You buy a stock whose return (including both dividends and change in stock price) depends on whether the nation's gross domestic product is rising, constant, or falling. If the gross domestic product is rising, the return is 20%, if it is constant, the return is 5%; and if it is falling, the return is - 10%. You believe that it is equally likely that the gross domestic product will rise, remain constant, or fall. What is the expected value of the return and standard deviation from this stock? b) What does the expected value and standard deviation represent.Gross Investment $18 National Income 100 Net Exports N Personal Income 85 Personal Consumption 70 Expenditures Saving Government Purchases Net Domestic Product 105 Statistical Discrepancy Refer to the accompanying data (all figures in billions of dollars). The gross domestic product for this economy is