MB113: ECONOMICS 1 (300-350 words):The movie industry in the 1920s saw great expansions with many small studios taken overand creating the studio system that has run film making until today. Many studios used tomake 20 to 30 movies a year. Now, they focus on fewer movies with bigger budgets (thinkMCU and DCU and others). Over the past few years, the big blockbusters have grownsignificantly in popularity and some of those are generating significant revenue for the filmstudios. With your understanding of economic concepts:(a) Do you believe there be continued success over the next couple of years?(b) Will consumers pay a premium to continue to watch films or other content that maybe similar to what they’re already seeing?In answering the question, make use of diagrams and other tools to help explain the currentphenomena and to answer the above questions. 2 (300-350 words):In 2019, the Australian retail market made headlines for all the wrong reasons. Retailspending slumped to a 28-year low, the industry was further impacted by the challenge ofemployee underpayments and more retailers were forced to shut their doors, driven by awave of consumer change. The rise of American-style shopping malls has given the owners ofthose malls enormous power over retailers, and they have wielded that power ruthlessly. bigincreases in that rent every year regardless of trading conditions, have become the norm.With your understanding of economic concepts:(a) How has COVID 19 help change and shape consumer behaviour?(b) Explain how this would affect large landlords of large shopping centres likeWestfields, Vicinity and others 3 (100-150):The Australian Bureau of Statistics recently reported a change in unemployment rate from5.2% to 6.2%.With your understanding of unemployment, underemployment and others, do you believethis change is reflective of the employment situation in Australia? Discuss 4 (400 words):“The COVID-19 pandemic brought to an end an extended period of stable (but onlymoderate) growth, low inflation, and low financial market volatility…The exceptionalmeasures taken to contain COVID-19 are having a major effect on economic activity andthe global financial system. The high level of uncertainty surrounding the size andduration of the economic downturn is accentuated by the uncertainty around theeffectiveness of the various measures in containing the spread of the virus.”Financial Stability Review April 2020, RBACritically Evaluate the effectiveness of the responses of central banks and the effectivenessof monetary policy during this crisis. Apply economic models in your explanation whereapplicable.5 (450 words):“Australia finds itself at war against a faceless and flagless enemy. The coronavirus hascreated a one in a hundred-year event. A health and economic shock the likes of whichthe world has never seen.”Ministerial Statement on the Economy, Josh FrydenbergDiscuss treasury’s response to the crisis and critically evaluate its effectiveness. Applyeconomic models in your explanation where applicable.