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Canada’s Economy
A short summary of what to know, then 7 free practice questions with answers.
What to know
Canada has a market economy and is one of the world’s largest economies. It has three main types of industries: service industries, manufacturing industries and natural resource industries.
Service industries, such as transportation, education, health care, construction, banking and government, employ by far the largest share of Canadians. Manufacturing industries make products such as paper, technology, cars, food and clothing. Natural resource industries, including forestry, fishing, agriculture, mining and energy, have shaped Canada’s history and remain important, even though most Canadians now work in services.
Canada trades a great deal with other countries, and the United States is its largest trading partner. Canada exports energy to the U.S., including oil, gas and electricity. The North American Free Trade Agreement (NAFTA) has since been replaced by the Canada–United States–Mexico Agreement (CUSMA).
Key facts to remember
- Three main industries: service, manufacturing and natural resources.
- Most Canadians work in service industries.
- The United States is Canada’s largest trading partner.
- NAFTA was replaced by CUSMA.
Read the official chapter
This summary is our own and doesn’t replace the official guide. Read “Canada's Economy” in Discover Canada on canada.ca, then test yourself below. Next topic: Regions & geography.
Written by ChowChow Labs from Discover Canada. Last reviewed . Spotted a mistake? Tell us.
Question 1 · Economy
Which of these forms of energy does Canada export to the United States?
- A. Oil
- B. Natural gas
- C. Hydro-electricity
- D. All of the above
Show answer
Answer: D. All of the above
Canada is a major supplier of energy to the United States, including oil, natural gas and hydro-electricity.Source: Discover Canada, “Canada's Economy”
Question 2 · Economy
Which country is Canada's largest trading partner?
- A. China
- B. The United States
- C. The United Kingdom
- D. Mexico
Show answer
Answer: B. The United States
Canada and the United States are each other's largest trading partner.Source: Discover Canada, “Canada's Economy”
Question 3 · Economy
Iron ore, wheat and cod are examples of manufactured goods.
- A. True
- B. False
Show answer
Answer: B. False
These are products of the mining, agriculture and fishing industries, which are natural resources industries. Automobiles and aircraft are examples of manufactured goods.Source: Discover Canada, “Canada's Economy”
Question 4 · Economy
Most Canadians work in natural resources industries such as fishing and mining.
- A. True
- B. False
Show answer
Answer: B. False
Most Canadians work in service industries. Natural resources industries remain important, especially for exports, but employ fewer people.Source: Discover Canada, “Canada's Economy”
Question 5 · Economy
Which type of industry employs the largest share of Canadians?
- A. Natural resources industries
- B. Manufacturing industries
- C. Fishing industries
- D. Service industries
Show answer
Answer: D. Service industries
Most working Canadians are employed in service industries such as health care, education, retail and banking.Source: Discover Canada, “Canada's Economy”
Question 6 · Economy
What are the three main types of industries in Canada?
- A. Banking, fishing and tourism
- B. Mining, retail and shipping
- C. Service, manufacturing and natural resources
- D. Agriculture, aerospace and forestry
Show answer
Answer: C. Service, manufacturing and natural resources
Canada's economy is commonly grouped into service, manufacturing and natural resources industries.Source: Discover Canada, “Canada's Economy”
Question 7 · Economy
The North American Free Trade Agreement (NAFTA) was replaced by the Canada-United States-Mexico Agreement (CUSMA) in 2020.
- A. True
- B. False
Show answer
Answer: A. True
CUSMA came into force in 2020, replacing NAFTA as the trade agreement among Canada, the United States and Mexico.Source: Discover Canada, “Canada's Economy”
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