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.

QUESTION

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:

Oxford business group (2018)

5a. Thinking like an economist, how can you explain the concept of multiplier effect? Use 40 words.

(3 marks)

5b. Explain the employment multiplier or employment spillover of Oman’s tourism sector written below: Use 60 words.

5b-i. Direct

5b-ii. Indirect

5c-iii. Induced

The newsletter.

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 city’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.

Question

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.

“Oman 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 prices” (Oman Tourism, 2016), however, because of the unprecedented outbreak of COVID-19, Oman’s tourism market hits its market. Relate in the form of a brief report of the economic impact of COVD-19 to Oman’s tourism market. Use 150 words.

ANSWER

Economic Impact of COVID-19 on Oman’s Tourism Market

Introduction

The outbreak of the COVID-19 pandemic has had a profound impact on economies worldwide, and the tourism industry is no exception. Oman, a country that has been actively investing in its tourism sector as part of its economic diversification strategy, faced significant challenges due to the unprecedented global crisis. This essay aims to provide a brief report on the economic impact of COVID-19 on Oman’s tourism market.

Economic Impact of COVID-19 on Oman’s Tourism Market

Prior to the pandemic, Oman had been making strides in developing its tourism sector, aiming to reduce its reliance on the energy industry. However, the sudden onset of COVID-19 and the subsequent travel restrictions and lockdown measures severely affected the tourism market in Oman.

Decline in Tourist Arrivals

With international borders closed and travel restrictions imposed, Oman experienced a sharp decline in tourist arrivals (Alhasni, 2021). International visitors were unable to enter the country, resulting in a significant reduction in the number of tourists exploring Oman’s cultural and natural attractions. This decline had a direct impact on the revenue generated from tourism-related activities.

Closure of Hotels and Tourism Facilities

To curb the spread of the virus, Oman had to temporarily close hotels, resorts, and other tourism facilities. This led to a halt in tourism-related services, such as accommodation, dining, and entertainment. As a result, many businesses in the hospitality sector faced financial hardships, including job losses and revenue decline.

Job Losses and Economic Slowdown

The closure of tourism-related businesses had a cascading effect on employment in Oman. Many individuals working directly in the tourism sector, including hotel staff, tour guides, and travel agents, faced layoffs and reduced working hours (Al-Mughairi et al., 2021). This had an immediate impact on their livelihoods and purchasing power, resulting in decreased consumer spending and an overall economic slowdown.

Disruption of Supply Chains

The tourism industry relies on a complex network of suppliers, including local farmers, artisans, and transportation services (Da Huynh et al., 2021). The disruption caused by COVID-19 affected the entire supply chain, leading to reduced demand for goods and services, job losses in supporting industries, and a decline in local economic activity.

Conclusion

The COVID-19 pandemic has significantly impacted Oman’s tourism market, stalling the progress made in developing the sector and diversifying the economy. The decline in tourist arrivals, closure of hotels and tourism facilities, job losses, and disruption of supply chains have all contributed to an economic slowdown. As the world recovers from the pandemic, it will be crucial for Oman to adapt and implement strategies to revive its tourism industry, ensuring its resilience in the face of future crises.

References

Alhasni, Z. S. (2021). The economic impact of COVID-19 on the Omani tourism sector. Psychology, 58(2), 824–830. https://doi.org/10.17762/pae.v58i2.1946 

Al-Mughairi, H., Bhaskar, P., & Alazri, A. K. H. (2021). The economic and social impact of COVID‐19 on tourism and hospitality industry: A case study from Oman. Journal of Public Affairs, 22(S1). https://doi.org/10.1002/pa.2786 

Da Huynh, V., Truong, T. T., Duong, L., Nguyen, N. T., Dao, G. T., & Dao, C. D. (2021). The COVID-19 Pandemic and Its Impacts on Tourism Business in a Developing City: Insight from Vietnam. Economies, 9(4), 172. https://doi.org/10.3390/economies9040172