Week 7 - Alcohol Flashcards
(147 cards)
What was the primary driver behind the Alberta government’s decision to privatize the Alberta Liquor Control Board (ALCB) in the 1990s?
A. To generate increased revenue from alcohol sales.
B. To appease anti-government sentiment and promote small businesses.
C. To address concerns about the ALCB’s inefficiency and high operating costs.
D. To align with federal government mandates for deregulation of the alcohol industry.
B. To appease anti-government sentiment and promote small businesses.
What was a significant factor contributing to the Ontario government’s decision to retain and modernize the Liquor Control Board of Ontario (LCBO) under Premier Mike Harris?
A. Strong public support for the LCBO and opposition to privatization.
B. The LCBO’s ability to generate substantial revenue for the provincial government, particularly through monopoly rents.
C. The influence of powerful labor unions representing LCBO employees.
D. Concerns about the potential negative social impacts of alcohol privatization.
B. The LCBO’s ability to generate substantial revenue for the provincial government, particularly through monopoly rents.
The source examines the theoretical perspectives that might explain the divergent outcomes in Alberta and Ontario’s liquor board policies. Which of the following theoretical perspectives does the author find least effective in explaining these outcomes?
A. Multiple Streams Decision-Making Model
B. Historical Institutionalism
C. Marxist Analysis
D. Rational Choice Theory
C. Marxist Analysis and
D. Rational Choice Theory
- What is the main purpose of the article “Alberta’s and Ontario’s liquor boards: Why such divergent outcomes?”
(a) To argue for the privatization of all liquor boards in Canada.
(b) To examine the reasons why Alberta privatized its liquor board while Ontario opted to retain and modernize its own.
(c) To compare the prices and selection of alcoholic beverages in Alberta and Ontario.
(d) To advocate for the adoption of the Alberta model of liquor distribution in other provinces.
(b) To examine the reasons why Alberta privatized its liquor board while Ontario opted to retain and modernize its own.
- Which of the following research methods did the author use to gather information for the article?●
(a) Analysis of government documents only●
(b) Surveys of consumers in Alberta and Ontario.●
(c) Interviews with key participants in both provinces, including politicians, bureaucrats, and interest group representatives.●
(d) Statistical analysis of alcohol consumption rates in both provinces.
(c) Interviews with key participants in both provinces, including politicians, bureaucrats, and interest group representatives.●
- What theoretical frameworks does the author use to analyze the divergent policy outcomes in Alberta and Ontario?●
(a) John Kingdon’s “multiple streams decision-making model” and historical institutionalism.●
(b) Rational choice theory and game theory.●
(c) Marxist theory and dependency theory.●
(d) Feminist theory and critical race theory.
(a) John Kingdon’s “multiple streams decision-making model” and historical institutionalism.●
- According to the article, what were the main factors that contributed to the Klein government’s decision to privatize the ALCB?●
(a) The desire to increase government revenue from alcohol sales.●
(b) The province’s difficult economic times, a desire to reduce the size of the public sector, and the belief that a private market would be more efficient.●
(c) Pressure from large grocery store chains to enter the alcohol retail market.●
(d) The belief that privatization would lead to lower alcohol consumption rates.
(b) The province’s difficult economic times, a desire to reduce the size of the public sector, and the belief that a private market would be more efficient.●
- How did the Harris government’s approach to the LCBO differ from the Klein government’s approach to the ALCB?●
(a) The Harris government privatized the LCBO, while the Klein government retained the ALCB.●
(b) The Harris government retained and modernized the LCBO, while the Klein government privatized the ALCB.●
(c) The Harris government imposed stricter regulations on the LCBO, while the Klein government deregulated the ALCB.●
(d) The Harris government reduced funding for the LCBO, while the Klein government increased funding for the ALCB.
(b) The Harris government retained and modernized the LCBO, while the Klein government privatized the ALCB.
- Which of the following best describes the structure of the liquor retail market in Ontario?●
(a) A free market with no government intervention.●
(b) A government monopoly controlled by the LCBO.●
(c) An oligopoly dominated by the LCBO, The Beer Store, and a limited number of wine stores.●
(d) A highly competitive market with a large number of small, independent retailers.
(c) An oligopoly dominated by the LCBO, The Beer Store, and a limited number of wine stores.●
- What role did interest groups play in shaping the policy outcomes in Alberta and Ontario?●
(a) Interest groups had no influence in either province.●
(b) Powerful interest groups in Ontario, such as The Beer Store and large wineries, supported the existing system and helped to prevent privatization. In Alberta, the lack of strong opposition and the support of hotel and restaurant associations facilitated privatization.●
(c) Interest groups representing public health concerns were successful in blocking privatization in both provinces.●
(d) Interest groups representing alcohol suppliers were uniformly opposed to privatization in both provinces.
(b) Powerful interest groups in Ontario, such as The Beer Store and large wineries, supported the existing system and helped to prevent privatization. In Alberta, the lack of strong opposition and the support of hotel and restaurant associations facilitated privatization.
- According to the article, how did the LCBO’s modernization efforts affect consumer preferences?●
(a) They had no impact on consumer preferences.●
(b) They led to a decrease in alcohol consumption rates.●
(c) They successfully shifted consumer perceptions of alcohol and encouraged the purchase of higher-value products.●
(d) They led to a decrease in customer satisfaction with the LCBO.
(c) They successfully shifted consumer perceptions of alcohol and encouraged the purchase of higher-value products.
- What are the key conclusions of the article?●
(a) Contextual factors, such as political culture and the influence of interest groups, played a significant role in shaping the divergent policy outcomes in Alberta and Ontario.●
(b) Neoliberal ideology was the primary driver of both privatization in Alberta and the modernization of the LCBO in Ontario.●
(c) The structure of the liquor distribution system has a direct and causal impact on alcohol consumption rates.●
(d) Privatization of liquor boards is always the most efficient and effective way to distribute alcoholic beverages.
(a) Contextual factors, such as political culture and the influence of interest groups, played a significant role in shaping the divergent policy outcomes in Alberta and Ontario.
- According to the article, which of the following is NOT a significant factor in determining the price of alcoholic beverages?●
(a) The type and intensity of taxes imposed by governments.●
(b) The structure of the distribution system (public or private).●
(c) The production costs of the products.●
(d) The wholesale and retail markups.
(b) The structure of the distribution system (public or private).
- Why was the decision by the Klein government to privatise the ALCB considered a policy shift that aligned with the principles of neoliberalism?●
(a) It aimed to restrict individual freedom and limit choices for consumers.●
(b) It increased government regulation and control over the alcohol industry.●
(c) It prioritized social welfare and community well-being above all else.●
(d) It aimed to reduce the size and role of the state and promote market-based solutions.
(d) It aimed to reduce the size and role of the state and promote market-based solutions.
- What was the main argument put forth by the LCBO to prevent its privatisation?●
(a) Privatisation would lead to a decrease in product quality.●
(b) Privatisation would threaten the substantial revenue, including monopoly rent, that the LCBO generated for the government.●
(c) Privatisation would create a job shortage in the alcohol industry.●
(d) Privatisation would lead to an increase in alcohol consumption and related social problems.
(b) Privatisation would threaten the substantial revenue, including monopoly rent, that the LCBO generated for the government.
- What is the significance of the author’s discussion of the ‘endogenous nature of preferences’ in the context of alcohol distribution in Alberta and Ontario?●
(a) It suggests that individuals have fixed, predetermined preferences regarding alcohol consumption and distribution methods.●
(b) It highlights that consumer preferences and perceptions of alcohol can be shaped by the structure and marketing strategies of the distribution system, illustrating that both systems can achieve satisfactory outcomes by adapting to the specific context.●
(c) It emphasises the strong influence of external factors such as social norms and cultural values on individual alcohol preferences.●
(d) It argues that price is the sole determinant of consumer choice and that other factors like product selection and service quality are irrelevant.
(b) It highlights that consumer preferences and perceptions of alcohol can be shaped by the structure and marketing strategies of the distribution system, illustrating that both systems can achieve satisfactory outcomes by adapting to the specific context.
- Which historical and cultural factors in Ontario contributed to the decision to retain and modernise the LCBO rather than privatise it?●
(a) The province’s Protestant past and a history of state intervention in the economy, particularly in agriculture, leading to a more cautious approach towards alcohol availability and acceptance of a strong role for the state.●
(b) A strong libertarian tradition advocating for minimal government interference in all aspects of life, including alcohol distribution.●
(c) A deep-seated cultural aversion to alcohol consumption and a belief that it should be prohibited entirely.●
(d) A strong preference for a free market approach in all sectors, making government-controlled alcohol distribution unpopular.
(a) The province’s Protestant past and a history of state intervention in the economy, particularly in agriculture, leading to a more cautious approach towards alcohol availability and acceptance of a strong role for the state.
- What strategy did the LCBO employ to increase government revenue while addressing concerns about potential increases in alcohol consumption due to modernisation efforts?●
(a) Significantly reduce the variety and selection of alcoholic beverages available.●
(b) Implement strict limitations on the hours of operation for LCBO stores.●
(c) Focus on “up-selling” consumers by promoting and selling higher-value alcohol products, appealing particularly to female shoppers.●
(d) Increase prices uniformly across all alcohol product categories to maximise revenue generation.
(c) Focus on “up-selling” consumers by promoting and selling higher-value alcohol products, appealing particularly to female shoppers.
- How did the Alberta government structure the newly privatised liquor market?●
(a) It created a completely free market with no restrictions on the size or concentration of retailers.●
(b) It allowed only large grocery chains to operate liquor stores, creating an oligopoly.●
(c) It granted a monopoly on liquor retailing to a single private company.●
(d) It implemented regulations designed to protect small, independent businesses by limiting the market
(d) It implemented regulations designed to protect small, independent businesses by limiting the market power of large grocery stores.
- According to the author, why was the decision to privatise the ALCB consistent with Alberta’s political culture?●
(a) Albertans have a strong preference for government control and intervention in most industries.●
(b) Albertans typically align with the values of a strong welfare state.●
(c) Albertans tend to favor large corporations and distrust small businesses.●
(d) Albertans have historically favoured limited government, a strong sense of populism and entrepreneurial spirit, which the policy choice resonated with.
(d) Albertans have historically favoured limited government, a strong sense of populism and entrepreneurial spirit, which the policy choice resonated with.
- Why does the author believe that the Marxist and rational choice theoretical frameworks are inadequate for explaining the policy outcomes related to alcohol distribution in Alberta and Ontario?●
(a) These frameworks accurately predict and explain the observed policy choices in both provinces.●
(b) These frameworks focus heavily on the role of individual actors, overlooking the influence of broader societal factors.●
(c) These frameworks rely on universal assumptions and fail to adequately consider the crucial influence of place-specific historical, cultural, political and institutional contexts that shape the policy landscape.●
(d) These frameworks lack empirical support and have not been widely used in the study of public policy.
(c) These frameworks rely on universal assumptions and fail to adequately consider the crucial influence of place-specific historical, cultural, political and institutional contexts that shape the policy landscape.
- What significant challenge did the LCBO face in the mid-1980s that prompted its modernisation efforts?●
(a) A sharp decline in alcohol consumption rates, leading to decreased revenue.●
(b) Increased competition from illegal alcohol sales.●
(c) It was an under-capitalised and inefficient organisation, struggling with outdated infrastructure, poor customer service and ineffective management, leading to a push for reform to improve its performance.●
(d) A public outcry over the high prices of alcoholic beverages.
(c) It was an under-capitalised and inefficient organisation, struggling with outdated infrastructure, poor customer service and ineffective management, leading to a push for reform to improve its performance.
- What was the main reason behind the Harris government’s decision to increase capital expenditure for the LCBO after initially considering privatisation?●
(a) To appease the LCBO’s union and prevent potential labour strikes.●
(b) To address public health concerns about increased alcohol availability.●
(c) To complete the LCBO’s modernisation process, enabling it to operate more efficiently and generate higher revenue for the government while maintaining control over the lucrative alcohol market.●
(d) To align with the government’s neoliberal ideology of shrinking the public sector.
(c) To complete the LCBO’s modernisation process, enabling it to operate more efficiently and generate higher revenue for the government while maintaining control over the lucrative alcohol market.
- What was the impact of the different taxation regimes in Alberta and Ontario on the price of alcoholic beverages?●
(a) The taxation regime had no impact on prices.●
(b) Alberta’s simpler, flat tax on alcohol content resulted in significantly lower prices compared to Ontario.●
(c) While Albertans paid marginally higher prices for similar products, the overall price difference was not substantial and was primarily attributed to variations in tax rates and structures rather than the nature of the distribution system.
(d) Ontario’s complex ad valorem tax system led to much lower prices compared to Alberta.
(c) While Albertans paid marginally higher prices for similar products, the overall price difference was not substantial and was primarily attributed to variations in tax rates and structures rather than the nature of the distribution system.