Week 7 Flashcards
What year did Alberta privatize its liquor control system?
- a) 1990
- b) 1993
- c) 1995
- d) 1997
b
What approach did Ontario take instead of privatization?
- a) Complete deregulation of the LCBO
- b) Selling off the LCBO
- c) Modernizing the LCBO
- d) Creating a cooperative liquor retail system
c
Which economic challenge influenced both provinces’ decisions regarding liquor boards?
- a) Rising oil prices
- b) High deficits and unemployment
- c) Excessive liquor production
- d) Declining consumer demand
b
What was a key reason behind Alberta’s decision to privatize its liquor control system?
- a) To reduce union influence
- b) To limit alcohol consumption
- c) To increase government control
- d) To expand the role of large retailers
a
What type of tax system was introduced in Alberta following privatization?
- a) Progressive income tax
- b) Ad valorem tax on liquor value
- c) Flat tax based on alcohol content
- d) Luxury tax on premium liquors
c
How were liquor stores regulated in Alberta after privatization?
- a) Only large retail chains could open stores
- b) No restrictions on the number or concentration of stores
- c) All stores had to be state-operated
- d) Stores had to be located within grocery stores
b
What was Alberta’s government’s primary goal with privatization?
- a) To reduce prices for consumers
- b) To eliminate the public sector in liquor distribution
- c) To improve liquor store ambiance
- d) To centralize distribution for efficiency
b
What drove Ontario’s decision to modernize the LCBO instead of privatizing it?
- a) Public opposition to privatization
- b) Desire to reduce provincial revenues
- c) Resistance from liquor producers
- d) Support from large grocery chains
a
Which of the following improvements was not part of Ontario’s LCBO modernization?
- a) Upgrading store layouts
- b) Increasing staff training
- c) Launching the Food and Drink magazine
- d) Introducing 24-hour liquor sales
d
- How did the LCBO focus on increasing revenue without increasing alcohol consumption?
- a) Expanding store locations
- b) Promoting higher-value products
- c) Increasing tax rates on alcohol
- d) Selling larger volumes of discounted alcohol
b
- What political culture in Alberta supported privatization?
- a) Social conservatism
- b) Populism and skepticism toward government
- c) Progressivism and environmentalism
- d) Strong union influence
b
- Which historical factor influenced Ontario’s preference for retaining the LCBO?
- a) Protestant heritage and temperance movements
- b) Economic reliance on liquor exports
- c) Lack of public support for state institutions
- d) High demand for alcohol accessibility
a
- What role did public health advocates play in Ontario’s decision?
- a) They actively supported privatization
- b) They opposed privatization due to concerns about alcohol access
- c) They encouraged the LCBO to lower alcohol prices
- d) They lobbied for increased liquor production
b
- What was Ralph Klein’s justification for privatizing Alberta’s liquor system?
- a) To reduce competition in the market
- b) To create an efficient, government-controlled distribution system
- c) To align with “common sense” and reduce government scope
- d) To increase unionized jobs in the public sector
c
- How did Alberta ensure that privatization remained revenue-neutral?
- a) By implementing a flat tax system
- b) By increasing liquor prices
- c) By reducing retailer profit margins
- d) By introducing subsidies for private liquor stores
a
- How did Ontario’s LCBO contribute to provincial revenue?
- a) By expanding liquor store hours
- b) Through operating profits and monopoly rents
- c) By charging high consumer markups
- d) By licensing private liquor stores
b
- What was the key difference in consumer experience between Alberta and Ontario?
- a) Alberta’s stores had better-trained staff
- b) Ontario’s stores offered a premium shopping environment
- c) Alberta’s stores had fewer product options
- d) Ontario’s stores were open for longer hours
b
- What percentage of Ontario’s liquor market was controlled by the LCBO in 2007–08?
- a) 40%
- b) 50.8%
- c) 60%
- d) 70%
b
- Who were the main opponents of Alberta’s privatization?
- a) Hotel and restaurant associations
- b) Liquor suppliers and unionized employees
- c) Provincial farmers
- d) Retail customers
b
- Which stakeholder in Ontario strongly supported the LCBO’s retention?
- a) Small independent liquor stores
- b) The Beer Store and large brewers
- c) Municipal governments
- d) Consumer advocacy groups
b
- What was one reason liquor suppliers supported the LCBO?
- a) It reduced their transaction costs
- b) It allowed unlimited retail expansion
- c) It promoted deregulated liquor pricing
- d) It gave them access to private wholesalers
a
- What restriction on liquor retailing was imposed in Alberta post-privatization?
- a) Liquor stores had to be standalone businesses
- b) Liquor could only be sold by grocery chains
- c) Alcohol sales were banned after 8 p.m.
- d) Retailers had to offer a fixed product selection
a
- What was the primary focus of LCBO’s Food and Drink magazine?
- a) Promoting health risks of alcohol
- b) Encouraging middle-class lifestyles and premium product sales
- c) Providing discounts on alcohol
- d) Highlighting the history of the LCBO
b
- Why are Alberta liquor stores perceived as less inviting than LCBO stores?
- a) Fewer product options
- b) Lack of investment in ambiance and training
- c) Limited opening hours
- d) Poor customer service
b
- What percentage of alcohol is consumed by the heaviest-drinking 10% of the population?
- a) 30%
- b) 50%
- c) 70%
- d) 90%
b
- How did Ontario’s LCBO balance alcohol-related social concerns with its modernization?
- a) By limiting store hours and reducing accessibility
- b) By promoting social responsibility alongside premium products
- c) By reducing alcohol sales volumes
- d) By donating profits to public health initiatives
b
- Which framework best explains Alberta’s and Ontario’s divergent outcomes?
- a) Rational choice theory
- b) Historical institutionalism
- c) Marxist theory
- d) Behavioral economics
b
- What key factor is missing from universalist theories like rational choice when applied to these cases?
- a) Cultural and historical context
- b) Stakeholder self-interest
- c) Economic efficiency
- d) Political ideologies(
a
- How does the article challenge Marxist views on privatization?
- a) It shows the state retained power in Ontario through the LCBO
- b) It demonstrates that markets cannot replace public entities
- c) It highlights inefficiencies in private retail systems
- d) It suggests unions preferred privatization
a
- What is the article’s main conclusion about public administration decisions?
- a) They are primarily shaped by ideology
- b) Context and pragmatism heavily influence policy outcomes
- c) Privatization is always more efficient
- d) Public monopolies are inherently superior
b
