Canada's Economy: Citizenship Test Practice Questions

1. More than 75% ✓ Correct answer
2. About 25%
3. About 40%
4. About 50%

Why: More than 75% of working Canadians now work in service industries such as banking, retail, tourism, health care and government.

1. Service, tourism and fishing
2. Banking, farming and mining
3. Manufacturing, retail and defence
4. Service, manufacturing and natural resources ✓ Correct answer

Why: Discover Canada describes three main types of industries: service industries, manufacturing industries and natural resource industries.

1. Forestry
2. Mining
3. Banking ✓ Correct answer
4. Automobile manufacturing

Why: Service industries include transportation, education, health care, construction, banking, communications, retail, tourism and government.

1. Retail
2. Fishing ✓ Correct answer
3. Communications
4. Tourism

Why: Natural resource industries include forestry, fishing, agriculture, mining and energy.

1. Crude oil
2. Aerospace technology ✓ Correct answer
3. Raw timber
4. Fresh fish

Why: Manufacturing industries make products such as paper, high-technology equipment, aerospace technology, automobiles, machinery and food.

1. Natural resource industries ✓ Correct answer
2. Service industries
3. High-tech software industries
4. Entertainment industries

Why: Natural resource industries such as forestry, fishing, mining and energy shaped Canada's history and remain a large part of its exports.

1. China
2. The United Kingdom
3. Mexico
4. The United States ✓ Correct answer

Why: The United States is Canada's largest trading partner and the biggest market for Canadian manufactured goods.

1. About one-tenth
2. About one-quarter
3. More than three-quarters ✓ Correct answer
4. About one-half

Why: More than three-quarters of Canada's exports are destined for the United States.

1. A trade relationship limited to energy only
2. A relationship with no trade agreements
3. The biggest bilateral trading relationship in the world ✓ Correct answer
4. The smallest trade relationship in North America

Why: Canada and the U.S. have the biggest bilateral (two-country) trading relationship in the world.

1. 1967
2. 1988 ✓ Correct answer
3. 1976
4. 1994

Why: Canada and the United States signed a free trade agreement in 1988.

1. Mexico ✓ Correct answer
2. The United Kingdom
3. Japan
4. Cuba

Why: Mexico joined in 1994, creating the broader North American Free Trade Agreement (NAFTA).

1. North Atlantic Free Tariff Alliance
2. National American Fair Trade Act
3. North American Federal Tax Agreement
4. North American Free Trade Agreement ✓ Correct answer

Why: NAFTA was the North American Free Trade Agreement among Canada, the United States and Mexico (1994).

1. The General Agreement on Tariffs and Trade (GATT)
2. The North Atlantic Treaty (NATO)
3. The Canada-European Union Trade Pact of 1988
4. The Canada-United States-Mexico Agreement (CUSMA) ✓ Correct answer

Why: Discover Canada describes NAFTA; since July 2020 it has been replaced by CUSMA, which links the same three countries.

1. 3
2. 25
3. 10 ✓ Correct answer
4. 50

Why: Canada has one of the ten largest economies in the world.

1. OPEC
2. The G7 (called the G8 in Discover Canada) ✓ Correct answer
3. The Arab League
4. The BRICS group

Why: Discover Canada lists Canada in the G8; since Russia's suspension in 2014 the group operates as the G7 (Canada, U.S., U.K., France, Germany, Italy, Japan).

1. Canada has always been a trading nation ✓ Correct answer
2. Canada has always avoided foreign trade
3. Canada's economy depends only on farming
4. Canada trades only within the Commonwealth

Why: Canada has always been a trading nation, and commerce remains the engine of economic growth.

1. Energy products, machinery and agricultural goods ✓ Correct answer
2. Only finished clothing
3. Only tropical fruit
4. Only military vehicles

Why: Each year Canada exports billions of dollars of energy products, industrial goods, machinery, equipment, automotive, agricultural, fishing and forestry products, and consumer goods.

1. The Great Northern Wall
2. The Arctic Frontier
3. The Line of Confederation
4. The world's longest undefended border ✓ Correct answer

Why: Millions of Canadians and Americans safely cross what is traditionally called the world's longest undefended border every year.

1. Niagara Falls, Ontario
2. Detroit, Michigan
3. Blaine, in the State of Washington ✓ Correct answer
4. Halifax, Nova Scotia

Why: The Peace Arch at Blaine, Washington, symbolizes the close ties and common interests of Canada and the United States.

1. "From sea to sea"
2. "Children of a common mother" ✓ Correct answer
3. "Glorious and free"
4. "Peace, order and good government"

Why: The Peace Arch is inscribed with "children of a common mother" and "brethren dwelling together in unity."