Canada's Economy: Canadian Citizenship Test Questions

Q1.What are the three main types of industries in Canada's economy?

• Farming, fishing, and mining
• Service, manufacturing, and natural resources
• Banking, oil, and tourism
• Public, private, and charity

Answer: Canada's economy has three main types of industries: service industries, manufacturing industries, and natural resources industries.

Q2.Roughly what share of working Canadians have jobs in service industries?

• About 25%
• About half
• More than 75%
• Less than 10%

Answer: More than 75% of working Canadians now have jobs in service industries (transportation, education, health care, finance, retail, tourism, etc.).

Q3.Who is Canada's largest trading partner?

• The United Kingdom
• China
• The United States
• France

Answer: The United States is Canada's largest trading partner; over three-quarters of Canadian exports go to the U.S. — the biggest bilateral trading relationship in the world.

Q4.Canada first signed a free trade agreement with the United States in 1988. Which country joined in 1994 to form NAFTA?

• Mexico
• Brazil
• Japan
• The United Kingdom

Answer: Mexico joined in 1994 to form the broader North American Free Trade Agreement (NAFTA).

Q5.Which of the following is a 'natural resources' industry?

• Banking
• Forestry, fishing, and mining
• Retail
• Tourism

Answer: Natural resources industries include forestry, fishing, agriculture, mining, and energy — historically central to Canada's development.

Q6.Canada is a member of which group of leading industrialized democracies?

• The G7
• The European Union
• OPEC
• The Warsaw Pact

Answer: Canada is one of the world's largest economies and a member of the G7 group of leading industrialized democracies. (The guide refers to the 'G8'; Russia was suspended in 2014, leaving the G7.)

Q7.In 2018 Canada, the United States, and Mexico signed a new trade agreement to replace NAFTA. By what acronym is it known in Canada?

• CETA
• CUSMA
• TPP
• WTO

Answer: The Canada-United States-Mexico Agreement (CUSMA) replaced NAFTA as the trade agreement among the three North American countries.

Q8.Which Canadian province is especially known for its oil and gas industry?

• Prince Edward Island
• Alberta
• Manitoba
• New Brunswick

Answer: Alberta is known for its large oil and gas industry, including the oil sands, a major part of Canada's energy sector.

Q9.Fishing has long been a major industry along which Canadian coast?

• The Atlantic coast
• The shores of the Great Lakes only
• The Arctic coast only
• Hudson Bay only

Answer: The Atlantic provinces have a long history of fishing, an important natural-resource industry on Canada's east coast.

Q10.The Prairie provinces are best known for which type of industry?

• Forestry
• Agriculture (farming)
• Auto manufacturing
• Banking

Answer: The Prairie provinces (Manitoba, Saskatchewan, and Alberta) are among the most important agricultural regions, producing grains and other farm products.

Q11.Roughly what share of Canada's exports does trade with the United States represent?

• About one-quarter
• About half
• About three-quarters
• Almost none

Answer: About three-quarters of Canada's exports go to the United States, reflecting how important trade is to Canada's prosperity.

Q12.Manufacturing industries are especially concentrated in which two provinces?

• Ontario and Quebec
• Nova Scotia and PEI
• Yukon and Nunavut
• Saskatchewan and Manitoba

Answer: Manufacturing is centred in central Canada; Ontario and Quebec are the leading manufacturing provinces, including the automobile industry.

Q13.Which of these is an example of a service industry?

• Coal mining
• Banking and finance
• Commercial fishing
• Logging

Answer: Service industries include retail, education, health care, finance, transportation, and tourism, and they employ most working Canadians.

Q14.British Columbia is well known for which natural-resource industries?

• Forestry and mining
• Auto assembly and steel
• Wheat and cattle
• Banking and insurance

Answer: British Columbia's economy includes important forestry and mining industries, along with fishing and tourism.

Q15.True or False: Trade with other countries is important to Canada's wealth and prosperity.

• True
• False

Answer: True. Canada has always been a trading nation, and trade is essential to its prosperity and standard of living.

Q16.Canada and the European Union signed a major free trade agreement. What is it called?

• NAFTA
• CETA (Comprehensive Economic and Trade Agreement)
• CUSMA
• NORAD

Answer: CETA, the Comprehensive Economic and Trade Agreement, is a free trade agreement between Canada and the European Union.

Q17.The vehicles and parts produced by Canada's automobile industry are mainly an example of which type of industry?

• Service industry
• Manufacturing industry
• Natural resources industry
• Agricultural industry

Answer: Building automobiles and their parts is a manufacturing industry, one of the three main types in Canada's economy.

Q18.Mining of metals and minerals is best classified as which type of industry?

• Service industry
• Manufacturing industry
• Natural resources industry
• Financial industry

Answer: Mining extracts metals and minerals from the earth and is a natural-resources industry, alongside forestry, fishing, agriculture, and energy.

Q19.What does it mean to call Canada a 'trading nation'?

• Canada produces everything it needs and avoids imports
• International trade has always been important to Canada's economy
• Canada only trades with Europe
• Canada bans foreign goods

Answer: Canada has always been a trading nation; commerce with other countries has been central to the economy since its earliest days.

Q20.Which level of government in Canada is generally responsible for natural resources within its borders?

• The provinces
• The municipalities
• The United Nations
• Foreign governments

Answer: Under Canada's federal system, the provinces have significant responsibility for natural resources such as mining, forestry, and energy within their boundaries.