Economics of Canada

Canada’s economy is considered mixed. Why?

• It combines elements of both market and command economies.

• It is entirely controlled by the government.

• It relies solely on agriculture.

• It has no private businesses.

Canada’s involvement in NAFTA/USMCA has contributed to what the most?

• Increased tariffs

• Economic growth

• Isolation from global markets

• Decreased trade

What does free trade allow between Canada and the United States?

• Increased tariffs

• Restricted imports

• Unrestricted exchange of goods

• Limited exports

How does Canada benefit from specialization?

• By producing all goods domestically

• By focusing on goods it produces efficiently

• By avoiding international trade

• By increasing tariffs

Why do people exchange currency?

• To avoid taxes

• To be able to spend other currencies

• To keep money at home

• To increase savings

A Canadian person traveling to the United States first goes to the bank as they prepare for the trip. What are they most likely doing?

• Exchanging currency

• Opening a new account

• Applying for a loan

• Closing their account

How does the USMCA (formerly named NAFTA) promote economic growth in Canada?

• By increasing tariffs

• By restricting trade

• By facilitating free trade

• By banning imports

Which countries are included in the USMCA (formerly named NAFTA)?

• Canada, Mexico, United States

• Canada, France, United States

• Canada, China, United States

• Canada, Japan, United States

How do quotas help a country compete with similar foreign goods?

• By increasing imports

• By limiting the amount of foreign goods

• By eliminating tariffs

• By promoting foreign goods

When an individual starts his/her own business, this is an example of:

• Entrepreneurship

• Employment

• Importing

• Quota