Q: Which formula correctly calculates GDP per capita?

$$ GDP \div \text{Population} $$

Q: If the GDP of Nova Scotia increased from $$51,385$$ million in 2021 to $$55,173$$ million in 2022, what is the percentage increase in GDP?

$$ \frac{55,173 - 51,385}{51,385} \times 100 \approx 7.4\% $$

Question 1

Which of the following is a positive economic effect of recreational marijuana legalization, as described in the study materials?

Accepted Answer

Increase in tax revenue for federal, provincial, and municipal governments

Question 2

According to the materials, what is a major negative economic effect of recreational marijuana legalization?

Accepted Answer

Market oversaturation and product shortages

Question 3

Which concept best explains the relationship between price and quantity supplied in the cannabis market after legalization?

Accepted Answer

Supply and demand

Question 4

If the price of cannabis increases due to high demand, what is the expected effect on supply according to the law of supply?

Accepted Answer

Supply will increase

Question 5

Which formula correctly calculates GDP per capita?

Accepted Answer

$$ GDP \div 	ext{Population} $$

Question 6

Nova Scotia’s GDP per capita is consistently lower than the Canadian average. Which of the following is a plausible reason for this, based on the study materials?

Accepted Answer

Nova Scotia’s economic output per person is lower than the national average

Question 7

Which of the following is NOT a factor that can lead to changes in GDP, as discussed in the materials?

Accepted Answer

Seasonal fluctuations in weather

Question 8

A bakery in Ottawa sets a higher price for its products than competitors, justified by product quality and brand uniqueness. Which economic concept does this scenario best illustrate?

Accepted Answer

Monopoly pricing

Question 9

Suppose the demand for cannabis increases sharply after legalization, but supply cannot keep up. What is the likely short-term effect on price and equilibrium?

Accepted Answer

Price will increase and equilibrium quantity will increase

Question 10

Which of the following is a plausible multi-step effect of increased innovation and R&D in an industry, as described in the study materials?

Accepted Answer

Higher output, improved product quality, and increased competitiveness

Question 11

If a company faces high input costs and decides to innovate by automating production, which two economic effects are most likely to result?

Accepted Answer

Increase in output and decrease in labor costs

Question 12

Which of the following best describes the concept of price elasticity of demand in the context of the cannabis market?

Accepted Answer

Demand changes significantly in response to price changes

Question 13

If the GDP of Nova Scotia increased from $$51,385$$ million in 2021 to $$55,173$$ million in 2022, what is the percentage increase in GDP?

Accepted Answer

$$ \frac{55,173 - 51,385}{51,385} 	imes 100 \approx 7.4\% $$

Question 14

Which of the following is a likely consequence of overproduction and price shocks in the cannabis market?

Accepted Answer

Market volatility and business failures

Question 15

A company in a monopolistic market wants to expand. Which strategy, based on the study materials, would best help maintain its market power?

Accepted Answer

Innovating with new products and expanding customer loyalty programs

Question 16

Which of the following is a direct effect of increased liability costs in the cannabis industry?

Accepted Answer

Higher prices and reduced consumer access

Question 17

If a bakery in Ottawa faces competition from a new entrant offering similar products at lower prices, which economic concept is most relevant to predicting the bakery’s response?

Accepted Answer

Competitive pricing and product differentiation

Question 18

Which of the following is a plausible effect of resilience in the illicit cannabis market after legalization?

Accepted Answer

Loss of government revenue and unfair competition

Question 19

Suppose a province’s GDP per capita is $$40,000$$ and its population is $$1,000,000. $$What is the total GDP?

Accepted Answer

$$ 40,000 	imes 1,000,000 = 40,000,000,000 $$

Question 20

Which of the following best describes the impact of major global events (such as COVID-19) on provincial GDP, according to the study materials?

Accepted Answer

Provincial GDP can decrease due to reduced economic activity and investment

Macroeconomic Impacts of Recreational Marijuana Legalization and Regional GDP Analysis

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