Canadian Economy and Trade Flashcards
6 cards from real CANADIAN practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Canadian Economy and Trade flashcards as text
Canada's supply management system protects domestic producers in which combination of industries?
Answer: Dairy, poultry, and eggs
Canada's supply management system controls production and sets domestic prices in the dairy, poultry, and egg sectors through production quotas and import tariffs. This system was a major point of contention in CUSMA/USMCA negotiations.
Which agreement replaced NAFTA and came into force on July 1, 2020, governing trade between Canada, the United States, and Mexico?
Answer: CUSMA
CUSMA (Canada–United States–Mexico Agreement), known as USMCA in the U.S. and T-MEC in Mexico, replaced NAFTA on July 1, 2020. CETA is Canada's agreement with the EU, and CPTPP covers Pacific Rim nations.
The 'Dutch Disease' phenomenon, often discussed in the context of the Canadian economy, refers to what economic effect?
Answer: A rise in commodity exports causing the Canadian dollar to appreciate, which weakens the manufacturing sector's competitiveness
Dutch Disease describes how a booming resource export sector (like Alberta's oil sands) raises the exchange rate, making manufactured goods more expensive to export and undermining the manufacturing sector. The term originated from the Netherlands' natural gas boom in the 1960s.
Which Canadian province generates the largest share of Canada's total goods exports by value?
Answer: Ontario
Ontario consistently leads all provinces in total goods exports, driven by its large automotive manufacturing sector, machinery, and proximity to the U.S. industrial heartland. Alberta is second, led by energy exports, while BC and Quebec follow.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which Canada joined, notably excludes which major economy that originally shaped the predecessor agreement?
Answer: The United States
The CPTPP is the successor to the Trans-Pacific Partnership (TPP), which the United States withdrew from in 2017 under President Trump. The remaining 11 nations — including Canada, Japan, and Australia — proceeded without the U.S., creating the CPTPP.
Canada's equalization program transfers federal funds to less wealthy provinces. Which of the following provinces has historically been a net CONTRIBUTOR to the equalization system rather than a recipient?
Answer: Saskatchewan (since approximately 2008)
Saskatchewan transitioned from a recipient province to a non-recipient (net contributor position) around 2008, fueled by potash and oil revenues. Nova Scotia, PEI, and New Brunswick have consistently received equalization payments. Alberta has historically been the largest net contributor.