Canadian-Citizenship Practice Test - Canada's Economy 3 — Questions and Answers
Question 1: Which of Canada's territories or provinces has the largest economy by GDP?
- British Columbia
- Alberta
- Ontario (Correct answer)
- Quebec
Correct answer: Ontario
Ontario has the largest provincial economy in Canada, contributing the most to national GDP. Toronto, Ontario's capital, is Canada's financial centre and home to the Toronto Stock Exchange (TSX).
Question 2: What is the GST (Goods and Services Tax) in Canada?
- A tax on imported goods only
- A federal tax of 5% applied to most goods and services sold in Canada (Correct answer)
- A provincial tax that varies by province
- A luxury goods tax applied only to items over $1,000
Correct answer: A federal tax of 5% applied to most goods and services sold in Canada
The GST is a federal consumption tax of 5% applied to most goods and services in Canada. Many provinces combine it with their provincial sales tax into a single Harmonized Sales Tax (HST).
Question 3: What is Employment Insurance (EI) in Canada?
- Private insurance purchased by individuals to protect against job loss
- A federal program that provides temporary financial assistance to Canadians who lose their job or cannot work due to illness, pregnancy, or caregiving (Correct answer)
- A provincial benefit paid only to workers in seasonal industries
- A mandatory savings plan managed by employers
Correct answer: A federal program that provides temporary financial assistance to Canadians who lose their job or cannot work due to illness, pregnancy, or caregiving
Employment Insurance (EI) is a federal program funded by contributions from employees and employers. It provides temporary income support to eligible workers who lose their jobs, are ill, or take parental leave.
Question 4: The Trans-Canada Highway connects Canada from coast to coast. How long is it approximately?
- About 2,000 km
- About 5,000 km
- About 8,000 km (Correct answer)
- About 15,000 km
Correct answer: About 8,000 km
The Trans-Canada Highway stretches approximately 8,000 km from Victoria, British Columbia, to St. John's, Newfoundland, making it one of the longest national highways in the world.
Question 5: Which industry is the largest employer in Canada?
- Manufacturing
- Agriculture and food production
- The service sector (retail, finance, health, education) (Correct answer)
- Natural resources extraction
Correct answer: The service sector (retail, finance, health, education)
The service sector — including retail trade, financial services, health care, and education — is the largest employer in Canada, accounting for the majority of jobs in the Canadian economy.
Question 6: What is the Canada Pension Plan (CPP)?
- A voluntary savings plan for government employees only
- A mandatory contributory pension program that provides retirement, disability, and survivor benefits to eligible Canadians (Correct answer)
- A welfare program for low-income seniors funded entirely by the government
- An optional plan administered by private insurance companies
Correct answer: A mandatory contributory pension program that provides retirement, disability, and survivor benefits to eligible Canadians
The Canada Pension Plan (CPP) is a mandatory contributory social insurance program. Workers and employers make contributions, and eligible Canadians receive retirement, disability, and survivor benefits.
Canadian-Citizenship Practice Test - Canada's Economy 3
Which of Canada's territories or provinces has the largest economy by GDP?