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Economy: Citizenship Test Practice Questions

Economy is one of the seven topics in Discover Canada, the official guide every real test question comes from. It covers: Canada's economy, its major industries and trading partners, and the regions that drive the country's prosperity.

Of the 280 questions in our practice bank, 20 are Economy questions. On a typical 20-question test you can expect roughly 1 from this topic. Below are 9 sample questions with answers and explanations to show you exactly what to prepare for.

Sample Economy Questions and Answers

Try each question before expanding the answer. Every question below also appears in one of our free practice tests.

1. What are the three main types of industries in Canada?

AService industries, manufacturing, and natural resources
BTechnology, agriculture, and tourism
CMining, fishing, and forestry
DBanking, real estate, and transportation
Show answer and explanation
AService industries, manufacturing, and natural resources (Correct answer)

Explanation

The three main types of industries in Canada are service industries, manufacturing, and natural resources. These sectors form the backbone of Canada's diverse and highly developed economy.

2. Which type of industry employs the most Canadians?

ANatural resources
BManufacturing
CService industries
DAgriculture
Show answer and explanation
CService industries (Correct answer)

Explanation

Service industries employ the most Canadians. This sector includes retail, education, health care, finance, communications, and government services, making it the largest employer in the Canadian economy.

3. What is Canada's largest trading partner?

AChina
BThe United Kingdom
CThe United States
DJapan
Show answer and explanation
CThe United States (Correct answer)

Explanation

The United States is Canada's largest trading partner. The two countries share one of the world's largest and most comprehensive trading relationships, with billions of dollars in goods and services crossing the border each day.

4. What was Canada's economy historically based on?

AManufacturing and technology
BFarming and exporting natural resources such as fur, fish, and timber
CBanking and financial services
DMining gold and silver
Show answer and explanation
BFarming and exporting natural resources such as fur, fish, and timber (Correct answer)

Explanation

Canada's economy was historically based on farming and exporting natural resources such as fur, fish, and timber. The fur trade, in particular, was one of the earliest and most important economic activities that drove European exploration and settlement of Canada.

5. When was the Hudson's Bay Company founded?

A1610
B1670
C1720
D1780
Show answer and explanation
B1670 (Correct answer)

Explanation

The Hudson's Bay Company was founded in 1670, making it one of the oldest commercial corporations in the world. It played a central role in the fur trade and the exploration and development of large parts of Canada.

6. When did the Montreal Stock Exchange open?

A1801
B1832
C1867
D1899
Show answer and explanation
B1832 (Correct answer)

Explanation

The Montreal Stock Exchange opened in 1832 and was Canada's first stock exchange. It played a pivotal role in the development of Canada's financial markets and economy.

7. When was the Bank of Canada established?

A1913
B1934
C1945
D1952
Show answer and explanation
B1934 (Correct answer)

Explanation

The Bank of Canada was established in 1934 as Canada's central bank. It was created to manage the money supply and bring stability to the Canadian financial system during the Great Depression.

8. Which industry is a significant part of the Canadian economy, with millions of visitors coming to Canada each year?

AFishing
BAutomobile manufacturing
CTourism
DAerospace
Show answer and explanation
CTourism (Correct answer)

Explanation

Tourism is a significant part of the Canadian economy. Canada attracts millions of visitors each year who come to experience its natural beauty, including the Rocky Mountains, Niagara Falls, and national parks, as well as its vibrant cities and rich cultural heritage.

9. Which provinces are known for their forestry industry, producing pulp, paper, and softwood lumber?

ABritish Columbia, Quebec, and Ontario
BAlberta, Saskatchewan, and Manitoba
CNova Scotia, New Brunswick, and Prince Edward Island
DNewfoundland, Yukon, and Nunavut
Show answer and explanation
ABritish Columbia, Quebec, and Ontario (Correct answer)

Explanation

British Columbia, Quebec, and Ontario are the provinces most known for their forestry industry. These provinces have vast forests and are major producers of pulp, paper, and softwood lumber, making forestry one of Canada's most important export industries.

Practise Economy Until It Sticks

The app has 14 dedicated category tests, so you can practise Economy questions on their own. All 16 mock exams, every question in 13 languages, and weak-spot tracking, all in the app.

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Every full test includes Economy questions alongside the other six topics, in the same mix as the real exam.

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