Reference no: EM132900382

1. In 2020, the government of Canada was looking to obtain more nursing and doctors' gowns for their hospitals across Canada. Canada Goose is a Canadian clothing manufacturing company and agreed to produce gowns for the government using their existing manufacturing facilities which were currently used for production of their iconic winter coats.

a. Identify the elements of scarcity, choice, and opportunity cost for Canada Goose.

b. What is the effect on Canada Goose's production possibilities curve (PPC) when they decided to manufacture the gowns? Provide a graph, if necessary.

c. Discuss the ethical considerations for Canada Goose regarding the production possibilities of the gowns.

2. The current pandemic has produced what some Canadian economists term a 'she-cession', effectively meaning that there has been a much greater negative impact on female workers than on male workers. Many women have left the workforce, while men have added to the workforce during the pandemic.

a. What effect has the 'she-cession' had on unemployment and the economy?

b. What economic tools should Canada use to combat this 'she-cession' situation for temporary and long-term?

3. The Bank of Canada has been purchasing several billions of dollars of government of Canada bonds each week for several months now.

a. Suggest a fiscal policy tool which the Government of Canada could use to aid in Canada's economy recovery from Covid-19.

b. What would be the effects on the Canadian economy is this tool is used?

c. Discuss any possible risks from the use of this tool.

4. Let's assume there is an excess of supply of worldwide lithium, which is a component of batteries.

Determine the effects on:

a. Demand and Supply of Canadian-made cars with gas-driven engines.

b. Demand and Supply of electric-powered cars in Canada.

c. Demand and Supply of Canadian-made bicycles.

d. Demand and Supply for public transit in Canada.

e. The overall output of the Canadian economy.

5. The U.S. government has recently passed a large stimulus package which many economists believe will supercharge the U.S. economy for 2021.

a. How will this affect the Canadian economy regarding Unemployment?

b. How will this affect the Canadian economy regarding Supply?

c. How will this affect the Canadian economy regarding GDP?

d. Should Canada pass a large stimulus package for the Canadian economy, as well? If yes, what economic tool should be used? If no, why?