In November of 2022, in Edmonton, Alberta, Canada, the Canadian federal and provincial governments announced approximately $475 million (CAD) in project funding for Air Products' multi-billion-dollar landmark net-zero hydrogen energy complex in Alberta. The facility will produce hydrogen for domestic use and for export in time to support Canada’s 2030 target to reduce the country’s gas emissions. (Globe and Mail, November 2022). (10 Marks)

a. Identify the elements of scarcity, choice, and opportunity cost for Air Products now and in 2030. (6 Marks)

b. Discuss the effect on Air Products production possibilities curve (PPC) when they are in full production in 2030? Include a graph, if necessary. (2 Marks)

c. Discuss the ethical considerations for Air Products regarding the production possibilities of hydrogen gas production. (2 Marks)

2. The government of Canada is planning the implementation of a Pharmacare program by

passing a Canada Pharmacare Act in 2023 and developing a formulary and bulk purchasing plan for essential medicines by 2025. Pharmacare would offer universal coverage of drugs for all Canadians. (Canadians.org/analysis, Oct. 19, 2022) (10 Marks)

a. What would be the effects on the Canadian economy when this program is phased in? (7 Marks)

b. Discuss any possible risks to the Canadian government of thephasing in of this program. (3 Marks)

3. Hurricane Fiona hit the Canadian Atlantic provinces (the Maritimes) of Nova Scotia, PEI, New Brunswick, and Newfoundland in October of 2022. It is considered the most costly weather event in Atlantic Canada’s history.

c. Suggest a fiscal policy tool that the Government of Canada could use to aid the Maritimes in this situation. (2 Marks)

d. What would be effects be on the Canadian economy if this tool is used? (5 Marks)

e. Discuss any possible risks from the use of this tool. (3 Marks)

4. Currently, there is a worldwide shortage of computer microchips. Each question part is worth 2 marks. (10 Marks)

Determine the effects on:

a. Supply of tomatoes grown in the province of Ontario.

b. Supply of Ford automobiles made in Ontario.

c. Demand for e-bicycles in Canada.

d. GDP in Canada.

e. Short-run aggregate demand and aggregate supply in Canada’s economy.

5. Many activities are counted in the calculation of a country’s GDP. Discuss how each of the following affects the GDP calculation in Canada.

Lea’s Daycare facility in Halifax, Nova Scotia.

A family purchases a newly built home in Winnipeg, Manitoba.

Your neighbor fixes your car for $100 cash.

Your vacation time in Mexico.

A father of a newborn baby girl decides to stay home for the first year of the baby’s life.