FACULTY OF BUSINESS SENECA COLLEGE OF APPLIED ARTS AND TECHNOLOGY SENECA BUSINESS BUS 400 - BUSINESS ECONOMICS Final ExamVersion A DATE: 8/10/2021TIME ALLOWED: 2.50 hours PROFESSOR(S):Carl Lapp BUS...

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FACULTY OF BUSINESS SENECA COLLEGE OF APPLIED ARTS AND TECHNOLOGY SENECA BUSINESS BUS 400 - BUSINESS ECONOMICS Final ExamVersion A DATE: 8/10/2021TIME ALLOWED: 2.50 hours PROFESSOR(S):Carl Lapp BUS 400 Final Exam Summer 2021Version A Allowable Examination Aids: (check applicable boxes) ☒Calculators (non-programmable only)☐Math Tables (normal distribution table)☐Periodic Tables ☐Formula Sheets (attached)☐Textbooks☐Probability Tables ☐Dictionary☐Notes☐Other Answers to be completed on: ☐Exam BookletGradeMaster Card☒Exam Paper TOTAL MARKS:75VALUE FOR SEMESTER:25% INSTRUCTIONS: Section 9.1 of Seneca College Academic Policy: Offences under this policy include but are not limited to cheating, plagiarism, falsification, impersonation, misrepresentation and procurement. Engaging in any form of academic dishonesty to obtain any type of academic advantage or credit is an offence under this policy and will not be tolerated by the College. For descriptions and/or specific examples of these academic offences, see Appendix E. TO BE COMPLETED BY STUDENT SUBJECT SECTION NUMBER (e.g. QNM222 AA): STUDENT NAME: STUDENT NUMBER: STUDENT SIGNATURE: Part 2: Short Answer Essay and Technical Questions 50 Marks Please answer the following questions in the space provided below. 1. In 2021, the government of Canada signed an agreement to partner with drug manufacturer Sanofi Pasteur to build a new facility and begin to manufacture influenza vaccines in 2024. (10 Marks) a. Identify the elements of scarcity, choice, and opportunity cost for Sanofi Pasteur. (6 Marks) b. Discuss the effect on Sanofi Pasteur’s production possibilities curve (PPC) when they begin to manufacture the influenza vaccines in 2024? Include a graph, if necessary. (2 Marks) c. Discuss the ethical considerations for Sanofi Pasteur regarding the production possibilities of the influenza vaccines. (2 Marks) 2. The province of Alberta is the only province without a provincial sales tax. Due to Alberta’s high provincial debt and deficit, there has been much discussion regarding Alberta introducing a provincial sales tax to help alleviate its deficit. (10 Marks) a. What are the effects on Alberta’s economy by not having a provincial sales tax? (6 Marks) b. If you were the Alberta finance minister, would you use this fiscal tool to help control Alberta’s deficit? Why? If not, what would you use instead? (4 Marks) 3. The Canada emergency wage subsidy or (CEWS), was designed so businesses could keep their employees on payroll during the Covid-19 pandemic. (10 Marks) a. What would be the effects on the Canadian economy with the use of this tool? (5 Marks) b. Discuss any possible risks from the use of this tool. (3 Marks) c. Suggest a monetary policy tool which the Bank of Canada could use to aid in Canada’s economic recovery from Covid-19. (2 Marks) 4. Currently, there is world-wide shortage of computer microchips. (10 Marks) Determine the effects on: a. Supply of Ford automobiles made in Ontario. b. Supply of foreign farm workers in Ontario. c. Demand for automobiles in Canada. d. GDP in Canada. e. Short-run aggregate demand and aggregate supply in Canada’s economy. 5. The Human Development Index (HDI) is designed to measure human well-being in a country. Canada ranks very high on the HDI compared to other world countries. (10 Marks) a. Is Canada’s GDP a sufficient indicator of Canada’s HDI level? Why or why not? (2 Marks) b. Discuss several elements which can provide more information on Canada’s well-being. (5 Marks) c. In one of the elements you listed in part b., suggest how Canada can apply economic principles and ethical practices to improve its HDI. (3 Marks)