The test is open book. You can expect the following types of questions.
Sentence and graph corrections
You are given a statement that is incorrect and asked to correct it in two different ways or you are given a graph and a sentence that do not make and asked to correct the sentence to match the original graph and the graph to match the original sentence.
There will be at three of these questions. You will not get them in advance.
Never true, sometimes true, always true
You are given a statement and asked to determine whether the statement is always true, sometimes true or never true. You are asked to explain your choice.
There will be at least 1 of these questions. You will not get them in advance.
Long Answer questions
Econoville is a growing town on the outskirts of Toronto. It started out as a small village but the recent expansion of GO transit to the town has resulted in an influx of new families living in newly built housing developments that surround the older downtown. The town’s growth provides many opportunities for new and existing businesses. To better manage the growth, the town has formed a business association. Hearing of your success in advising your school principal, the president of the local business association is considering hiring you as a consultant. Before she is willing to do so, she wants to check your understanding of economics by giving you some practice scenarios.
Choose two of the following scenarios and explain what is happening. Provide advice to the business owner on their best strategies. Be sure to apply at least 3 economic concepts studied in class to each situation.
Troy Barnes has finished his training as an air conditioner repair person. He is trying to decide whether to open his own business or take a job with the Econoville division of ACME Heating and Cooling services. Currently ACME is the only repair service in town. Customers often complain that they have to wait several days for ACME to repair their air conditioning and that ACME charges a high price. At ACME he would be paid a weekly salary. If he opened his own business he would charge per repair. What things should he take into consideration when making his decision? What would you recommend he do?
Ron Swanson owns the local hardware shop. Last year, Wal-Mart opened a new store in town. Ron sells similar products as Wal-Mart, with less variety, but can’t match the company’s low prices. This is hurting his profitability. Explain to Mr. Swanson why this is happening. What should he do?
Garrett Lambert is a medallion-owning cab driver in Econoville and is worried because he has heard that Uber is planning to extend their operations to Econoville in the next six months. He is wondering what will happen once Uber starts operating in Econoville and what he should do with his taxi medallion.
|Criteria||Insufficient Evidence||Limited Evidence||Some Evidence||Considerable Evidence||High Degree of Evidence|
|1) Does the answer demonstrate an understanding of the underlying economic concepts? (KU)||0||1||2||3||4|
|2) Does the answer use appropriate models, graphs and examples to support arguments? (AP)||0||1||2||3||4|
|3) Is the answer well-reasoned? Does it consider multiple perspectives and all available evidence? (TI)||0||1||2||3||4|
|4) Does the answer come to a clear, easy to understand conclusion, supported by reasoned arguments? (CM)||0||1||2||3||4|