Canada's Economy and Industry Study Guide for the Citizenship Test

Canada has a strong, modern economy built on trade. Its three main types of industry are service industries, where most Canadians work, manufacturing industries, and natural resources such as forestry, fishing, agriculture, mining, and energy.

Trade is central to Canadian prosperity, and the United States is Canada's largest trading partner. Different regions are known for different industries. The Prairie provinces are known for agriculture and energy, and the Atlantic provinces for fishing. Regional industry is a common theme in citizenship test questions.

Key facts to remember

  • Canada's three main types of industry are service, manufacturing, and natural resources.
  • Most Canadians work in service industries.
  • The United States is Canada's largest trading partner.
  • Natural resources include forestry, fishing, agriculture, mining, and energy.

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Economy & Industry practice questions & answers

36 questions from this topic, with answers and explanations.

  1. Fill in the blank. Canada's largest and busiest port is ______.

    Answer: The Port of Vancouver

    The Port of Vancouver is Canada's largest and busiest port per Discover Canada.

  2. In 1670, King Charles II granted exclusive trading rights over the Hudson Bay watershed to which company?

    Answer: The Hudson's Bay Company

    In 1670 King Charles II granted the Hudson's Bay Company exclusive trading rights over the watershed draining into Hudson Bay.

  3. True/False. More than 75% of working Canadians have jobs in service industries.

    Answer: True

    True. More than 75% of working Canadians have jobs in service industries.

  4. Which province is the main producer of pulp and paper and hydro-electricity?

    Answer: Quebec

    Discover Canada states Quebec is the largest producer of pulp and paper and hydroelectric power.

  5. True/False. The United States is Canada's largest trading partner.

    Answer: True

    True. Canada's largest trading partner is the United States, and each is the other's largest trading partner.

  6. Which province has the most valuable forestry industry in Canada?

    Answer: British Columbia

    About half of the goods produced in B.C. are forestry products, the most valuable forestry industry in Canada.

  7. What is the role of the Bank of Canada, created in 1934?

    Answer: It is Canada's central bank, managing the money supply

    The Bank of Canada, created in 1934, is the central bank that manages the money supply and brings stability to the financial system.

  8. Which region is known as the industrial and manufacturing heartland of Canada?

    Answer: Central Canada.

    Discover Canada calls Central Canada the industrial and manufacturing heartland.

  9. What three industries are important to Ontario's economy today?

    Answer: Mining, tourism, automobile manufacturing

    Ontario's key industries per Discover Canada include mining (northern Ontario), tourism, and automobile manufacturing; fishing/farming options are not among its lead industries.

  10. Which two provinces produce more than three-quarters of all Canadian manufactured goods?

    Answer: Ontario and Quebec.

    Per Discover Canada, southern Ontario and Quebec form Central Canada, the industrial and manufacturing heartland, where Ontario and Quebec produce more than three-quarters of all Canadian manufactured goods.

  11. Why is trade with other countries important to Canada?

    Answer: It enhances our economy and raises our standard of living.

    Discover Canada emphasizes trade strengthens the economy and raises the standard of living.

  12. Which of the following is a list of Canada's natural resource industries?

    Answer: Forestry, fishing, agriculture, mining and energy.

    Per Discover Canada, natural resource industries include forestry, fishing, agriculture, mining and energy; these industries have played an important part in the country's history and development.

  13. Which province is the largest producer of oil and gas in Canada?

    Answer: Alberta

    Alberta is Canada's largest producer of oil and gas, with major oil sands in the north.

  14. In what industry do most Canadians work?

    Answer: Service.

    Discover Canada notes most Canadians are employed in the service industry.

  15. Fill in the blank. The Canada–United States border is traditionally known as the world's longest ______ border.

    Answer: undefended

    Millions cross what is traditionally known as 'the world's longest undefended border' between Canada and the United States.

  16. Historically, which natural resource industry has been most important to the economy of Atlantic Canada?

    Answer: Fishing.

    Per Discover Canada, Atlantic Canada's coasts and natural resources (including fishing, farming, forestry and mining) have shaped its history and economy, with the fisheries long central to the region.

  17. What are the three main types of industry in Canada?

    Answer: Natural resources, manufacturing and services.

    Discover Canada names the three main industry types as natural resources, manufacturing, and service industries.

  18. What was the name for the severe economic downturn that began with the 1929 stock market crash, when unemployment reached 27%?

    Answer: The Great Depression (the 'Dirty Thirties')

    The 1929 stock market crash led to the Great Depression; unemployment reached 27% in 1933.

  19. True/False. Canada and the United States have the biggest bilateral (two-way) trading relationship in the world.

    Answer: True

    True. Per Discover Canada, Canada and the United States are each other's largest trading partner and together have the biggest bilateral trading relationship in the world.

  20. What country is Canada’s largest trading partner?

    Answer: United States of America.

    The United States is Canada's largest trading partner per Discover Canada.

  21. Which province is Canada's largest producer of grains and oilseeds and holds the world's richest deposits of uranium and potash?

    Answer: Saskatchewan

    Saskatchewan has 40% of Canada's arable land, is the largest producer of grains and oilseeds, and has the world's richest uranium and potash deposits.

  22. Which of the following is an example of a Canadian manufactured product?

    Answer: Aerospace technology and automobiles.

    Per Discover Canada, manufactured products include paper, high technology equipment, aerospace technology, automobiles, machinery, food and clothing. Oil, gas, fish, lumber and grain are natural resource commodities, not manufactured goods.

  23. According to Discover Canada, about what share of Canada's exports go to the United States?

    Answer: About three-quarters

    Over three-quarters of Canadian exports are destined for the U.S.A., the biggest bilateral trading relationship in the world.

  24. Which three countries are signatories to NAFTA?

    Answer: Canada, Mexico and the United States.

    Discover Canada identifies NAFTA's signatories as Canada, the United States, and Mexico.

  25. What three industries are important to British Columbia's economy today?

    Answer: Forestry, mining, fishing

    Forestry, mining, and fishing are central to British Columbia's economy, per Discover Canada.

  26. What three industries are important to Alberta's economy today?

    Answer: Oil and gas, cattle ranching, agriculture

    Oil and gas, cattle ranching, and agriculture are central to Alberta's economy, per Discover Canada.

  27. What three industries are important to Saskatchewan's economy today?

    Answer: Wheat and grain farming, potash mining, uranium mining

    Wheat and grain farming, potash mining, and uranium mining are central to Saskatchewan's economy, per Discover Canada.

  28. What three industries are important to Manitoba's economy today?

    Answer: Agriculture, manufacturing, hydroelectric power

    Agriculture, manufacturing, and hydroelectric power are central to Manitoba's economy, per Discover Canada.

  29. What three industries are important to Quebec's economy today?

    Answer: Forestry, hydroelectric power, aerospace

    Forestry, hydroelectric power, and aerospace are central to Quebec's economy, per Discover Canada.

  30. What three industries are important to New Brunswick's economy today?

    Answer: Forestry, agriculture, fisheries

    Forestry, agriculture, and fisheries are central to New Brunswick's economy, per Discover Canada.

  31. What three industries are important to Nova Scotia's economy today?

    Answer: Fishing, shipbuilding, offshore oil and gas

    Fishing, shipbuilding, and offshore oil and gas are central to Nova Scotia's economy, per Discover Canada.

  32. What three industries are important to Prince Edward Island's economy today?

    Answer: Potato farming, fisheries, tourism

    Potato farming, fisheries, and tourism are central to Prince Edward Island's economy, per Discover Canada.

  33. What three industries are important to Newfoundland and Labrador's economy today?

    Answer: Fishing, offshore oil and gas, mining

    Fishing, offshore oil and gas, and mining are central to Newfoundland and Labrador's economy, per Discover Canada.

  34. What three industries are important to Yukon's economy today?

    Answer: Mining, tourism, hunting and trapping

    Mining, tourism, and hunting and trapping are central to Yukon's economy, per Discover Canada.

  35. What three industries are important to the Northwest Territories' economy today?

    Answer: Diamond mining, oil and gas, tourism

    Diamond mining, oil and gas, and tourism are central to the Northwest Territories' economy, per Discover Canada.

  36. What three industries are important to Nunavut's economy today?

    Answer: Mining, hunting and fishing, Inuit art

    Mining, hunting and fishing, and inuit art are central to Nunavut's economy, per Discover Canada.

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