Unit 10 SS Exam

Why is the Canadian economy considered a mixed economy?

• because Canada's finances depend on loans from a number of major banks

• because Canada's markets are subject to significant government regulations

• because most of Canada's income comes from investing in private businesses

• because most of Canada's industries are owned and operated by the government

What has Canada's involvement in the North American Free Trade Agreement contributed to the MOST?

• a significant decline in imports

• a significant decline in exports

• the growth of Canada's tourism sector

• the growth of Canada's business sector

Which of the following is true of free trade between Canada and the United States?

• It discourages the countries from producing goods their citizens need, like food.

• It is only beneficial to the wealthiest of the two countries, the United States.

• It allows each country to specialize in the production of certain goods.

What is one way Canada benefits through specialization?

• It can produce all of the goods that its citizens want and need.

• It can use its resources more efficiently than it could if it did not do so.

• It can fund its government without imposing high taxes on its citizens.

• It can control the prices that goods are sold for in its domestic markets.

Why would the Canadian government MOST LIKELY impose a tariff on certain imported goods?

• to increase the choices available to Canadian consumers

• to reduce prices of necessary goods for Canadian consumers

• to help domestic businesses better compete in Canadian markets

What is one reason for people to exchange currency?

• Most people want to use the Brazilian real to trade.

• Because countries have different currencies that are valued differently.

• Most people want to use American dollars to trade.

• They don't because people can use any currency at any business in the world.

Liam lives in Canada. He and his family are going on vacation to New York City. They will fly into a major airport and then take a taxi to meet Liam's aunt in the city. As they prepare for the trip, Liam's mom goes to a bank in Canada so that she will be prepared to pay for the taxi.

What is she MOST LIKELY doing?

• requesting a passport from Canada

• applying for citizenship in the United States

• withdrawing a large amount of Canadian money

• exchanging Canadian money for US money

How does the North American Free Trade Agreement promote economic growth in Canada?

• by giving the government more control over product prices

• by giving the government more control over production quotas

• by imposing barriers to trade with Mexico and the United States

• by eliminating barriers to trade with Mexico and the United States

Which nations are signatories to the North American Free Trade Agreement? Select all that apply.

• Brazil

• Canada

• Colombia

• the United States

• Mexico

How has the North American Free Trade Agreement increased trade between the nations of Canada, Mexico, and the United States?

• by reducing tariffs

• by imposing quotas

• by establishing embargoes

• by prohibiting foreign investment