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Canada's Economics Quiz

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

Type of economy that Canada has

a)

traditional

b)

command

c)

market

d)

mixed

2.
Free trade means 
a)
the countries use the same currency
b)
No trade barriers
c)
there is a quota on some goods
d)
trade is quick and easy
3.

Which is the best definition of a market economy?

a)

Decisions are made based on the prices set by buyers and sellers.

b)

Decisions are made based on the history of the country.

c)

Decisions are made based on the government.

d)

None of the above.

4.

Canada has what type of Economic system?

a)

Traditional

b)

Mixed Economy Closer to Market

c)

Mixed Economy closer to Command

d)

Pure Market

5.

Some Inuit tribes in northern Canada use bartering to trade and practice which type of economy?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

6.

Which characteristic BEST describes Canada’s economy?

a)

Market-leaning

b)

Traditional

c)

Command-leaning

d)

Pure market

7.

Which of the following would reflect Canada’s mixed economy?

a)

Prices and wages are solely regulated by the country’s government.

b)

A combination of privately-owned businesses and government regulations.

c)

The country’s distribution of resources is based on inheritance.

d)

All economic decisions are based on customs and beliefs of ancestors.

8.

Match gross domestic product (GDP) with the situation in Canada:

a)

Canada has a high GDP per capita and a high standard of living.

b)

Canada has a high GDP per capita and a low standard of living.

c)

Canada has a low GDP per capita and a high standard of living.

d)

Canada has a low GDP per capita and a low standard of living.

9.

Which of the letters best represents Canada in the economic continuum above?

a)

A

b)

B

c)

C

d)

None of the above

10.

The relationship between the literacy rate and standard of living is _________.

a)

Literacy rate has no effect on the standard of living.

b)

The higher the literacy rate, the higher the standard of living.

c)

The standard of living is independent of literacy rate.

d)

Low literacy rate creates a higher standard of living.

11.

If a car dealer from the United States wanted to engage in trade with a car dealer from Canada, what would the transaction require?

a)

a map

b)

a shipping route

c)

a way to exchange currencies

d)

a reliable internet connection

12.

How does voluntary trade help the economy?

a)

It encourages specialization which means more profit.

b)

It puts strict tariffs in place.

c)

It involves many government regulations.

d)

It sets high prices on imports.

13.

Canada’s economy specializes in all of the following EXCEPT?

a)

wheat production

b)

textile manufacturing

c)

fishing

d)

lumber & paper processing

14.

When Canada’s government puts a limit on how much American wheat and barley it will import this year, it is imposing which type of trade barrier?

a)

Embargo

b)

Tariff

c)

Quota

d)

Opportunity Cost

15.

Canada charges special taxes on U.S. cheese and butter brought across the U.S.-Canadian border. What type of trade barrier is this?

a)

Embargo

b)

Tariff

c)

Quota

d)

Opportunity Cost

16.

What is the purpose of a quota?

a)

The purpose is to artificially raise the price of a foreign good in order to make a local good cheaper.

b)

The purpose is to punish rogue nations for safety reasons.

c)

The purpose is to block trade with another nation.

d)

The purpose is to place a limit on imported goods so that citizens will buy more local goods.