Lesson 10

💼 Canada's economy

What Canadians do for work and who Canada trades with.

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Three kinds of industry

Canada's economy has three main types of industry: natural resources (such as forestry, fishing, mining and energy), manufacturing, and services. Service industries employ the most people: more than 75% of working Canadians have service jobs, in areas like health care, education, retail, banking and tourism. The Bank of Canada, the country's central bank, was created in 1934.

Remember

A trading nation

Trade with other countries strengthens Canada's economy and raises its standard of living. The United States is by far Canada's largest trading partner. The North American Free Trade Agreement (NAFTA), signed by Canada, the United States and Mexico, came into effect in 1994; it has since been replaced by an updated agreement, but the study guide describes NAFTA.

Remember

Practice questions

In what industry do most Canadians work?

  1. Natural resources.
  2. Tourism.
  3. Service.
  4. Manufacturing.

Answer: Service. Most Canadians work in the service industry, which is one of the three main types of industries in the country.

What are the three main types of industry in Canada?

  1. Natural resources, tourism and service industries.
  2. Tourism, services and manufacturing.
  3. Natural resources, tourism and manufacturing.
  4. Natural resources, manufacturing and services.

Answer: Natural resources, manufacturing and services. Canada's economy heavily relies on three main types of industry: natural resources, manufacturing, and services.

What country is Canada's largest trading partner?

  1. Mexico.
  2. United States of America.
  3. China.
  4. Japan.

Answer: United States of America. The United States is Canada's largest trading partner, and the two countries share the world's longest undefended border.

Why is trade with other countries important to Canada?

  1. It enhances our standard of living.
  2. It makes it easier for us to travel to foreign countries.
  3. It enhances our economy and raises our standard of living.
  4. It brings in cheaper goods.

Answer: It enhances our economy and raises our standard of living. Trade with other countries, particularly with the United States, is essential because it enhances our economy and raises our standard of living.

What percentage of working Canadians have jobs in service industries?

  1. About 25%
  2. More than 50%
  3. More than 75%
  4. 100%

Answer: More than 75%. More than 75% of working Canadians now have jobs in service industries, making it a crucial part of Canada's economy.

Which three countries are signatories to NAFTA?

  1. Canada, the United Kingdom and the United States.
  2. Canada, the United States and Japan.
  3. Canada, Mexico and the United States.
  4. Canada, Denmark and Andorra.

Answer: Canada, Mexico and the United States. Canada, Mexico and the United States are signatories to NAFTA (North American Free Trade Agreement).

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