Three broad parts of the economy
The guide groups economic activity into service industries, manufacturing and natural resources. Services employ most Canadians and include health care, education, retail, finance, communications, transportation, construction, tourism and government. Manufacturing turns materials into goods such as food, machinery, vehicles, paper and technology products.
Trade and transportation connect the country
Canada is a trading nation and the United States is its largest trading partner. The Canada–U.S. Free Trade Agreement took effect in 1989 after being signed in 1988, and NAFTA added Mexico in 1994. Some statistics in Discover Canada describe the era in which the guide was produced; use the guide’s framing for the test and current government sources for present-day planning.
Regional strengths and working life
Atlantic fisheries and offshore energy, Central Canadian manufacturing and finance, Prairie agriculture and energy, British Columbia forestry and Pacific trade, and northern mining are common question pairings. Ontario and Quebec together account for most manufacturing in the guide.
Key facts to remember
- Canada has a market economy with service, manufacturing and natural-resource sectors.
- Most Canadians work in service industries such as transportation, education, health care, construction, banking, communications and government.
- Manufacturing includes products such as food, machinery, transportation equipment, technology, paper and other goods.
- Forestry, fishing, agriculture, mining and energy remain important natural-resource industries, especially across particular regions.
- Canada is a trading nation. The United States is its largest trading partner, while commerce also connects Canada with markets worldwide.
- Workers have legal rights, including workplace safety protections and the ability to join a union; taxes help fund public services and programs.
Check yourself
- What are Canada’s three broad economic sectors?
- Service industries, manufacturing industries and natural-resource industries.
- Why is trade important to Canada?
- Exports and imports connect a relatively small domestic market to customers and suppliers, especially the United States.
- Which industries are especially important in your province or territory?
- Answers vary; connect the province with the regional industries described in the guide rather than relying on one stereotype.
Practice questions
Eight questions shaped like the official test: one right answer out of four, with the reason it is right. The timed twenty-question exams are in the app.
What are the three main types of industry in Canada’s economy?
- Resource, manufacturing and service
- Federal, provincial and municipal
- Mining, voting and justice
- Banking, courts and Parliament
Answer: Resource, manufacturing and service. The guide groups the economy into resource, manufacturing and service industries.
Which sector employs most Canadians?
- Service industries
- Fur trading
- Subsistence farming
- Military production
Answer: Service industries. More than three-quarters of working Canadians have jobs in service industries in the guide’s snapshot.
What is a major strength of Central Canada’s economy?
- Manufacturing and services
- Only commercial fishing
- Only diamond mining
- Only forestry
Answer: Manufacturing and services. Ontario and Quebec form Canada’s manufacturing and industrial heartland and have large service economies.
Which activities belong to the natural-resource sector?
- Forestry, fishing, agriculture, mining and energy
- Courts, voting and policing
- Retail, tourism and health care only
- Parliament and municipal councils
Answer: Forestry, fishing, agriculture, mining and energy. Canada’s resource economy includes forestry, fishing, farming, mining and energy.
Which country is Canada’s largest trading partner?
- France
- United Kingdom
- United States
- Japan
Answer: United States. Canada and the United States have the world’s largest bilateral trading relationship.
Why is international trade important to Canada?
- Canada produces and sells goods and services to global markets
- It eliminates provincial governments
- It replaces all domestic work
- It prevents resource development
Answer: Canada produces and sells goods and services to global markets. Trade supports jobs and allows Canadian goods, resources and services to reach larger markets.
What connects Canadian producers and communities across long distances?
- Transportation and communications infrastructure
- Only municipal bylaws
- The court system
- Political party membership
Answer: Transportation and communications infrastructure. Roads, railways, ports, airports and communications networks connect a large country.
What helps sustain public programs such as health care and education?
- Taxes paid within a productive economy
- Compulsory political donations
- Foreign voting
- Jury verdicts
Answer: Taxes paid within a productive economy. Economic activity and taxes help governments fund public services.