Structure and Performance of the Canadian Economy: Learn and Test Your Knowledge

Question 1

What is the term for government spending that aims to stimulate economic growth?

Accepted Answer

Expansionary fiscal policy

Answer

Contractionary fiscal policy

Answer

Monetary policy

Answer

Austerity measures

Question 2

Which of the following is a key economic indicator that measures the overall change in prices over time?

Accepted Answer

Inflation rate

Answer

GDP

Answer

Unemployment rate

Answer

Interest rate

Question 3

What is the primary purpose of Canada's Economic Action Plan?

Accepted Answer

Stimulate economic recovery and growth

Answer

Reduce government spending

Answer

Increase employment

Answer

Improve healthcare

Question 4

The Bank of Canada is responsible for implementing which type of policy?

Accepted Answer

Monetary

Answer

Fiscal

Answer

Industrial

Answer

Agricultural

Question 5

Which economic indicator measures the overall price level of goods and services purchased by households?

Accepted Answer

Inflation

Answer

GDP

Answer

Unemployment rate

Answer

Exchange rate

Question 6

What is a primary impact of a depreciating Canadian dollar on Canadian exports?

Accepted Answer

Lowers the cost of exports

Answer

Increases the cost of exports

Answer

Has no impact on exports

Answer

Decreases the value of exports

Question 7

What is the primary objective of the Canadian government's fiscal policy?

Accepted Answer

To promote economic growth and stability

Answer

To reduce inflation

Answer

To lower unemployment

Answer

To increase exports

Question 8

The Bank of Canada is primarily responsible for:

Accepted Answer

Setting interest rates and managing monetary policy

Answer

Managing the government's budget

Answer

Providing social welfare programs

Answer

Regulating the banking industry

Question 9

In comparison to its population size, Canada has a:

Accepted Answer

High level of international trade

Answer

Low level of international trade

Answer

Negligible level of international trade

Answer

Moderate level of international trade

Question 10

Which of the following is a commonly used indicator of economic growth?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Inflation rate

Answer

Unemployment rate

Answer

Balance of payments

Question 11

Historically, Canada's natural resources have played a:

Accepted Answer

Significant role in driving economic growth

Answer

Marginal role in economic development

Answer

Negative impact on environmental sustainability

Answer

Fluctuating role depending on global market conditions

Question 12

Which monetary policy instrument is primarily utilized by the Bank of Canada to influence the money supply and manage inflation?

Accepted Answer

Open market operations

Answer

Reserve requirements

Answer

Discount rate

Answer

Bond issuance

Question 13

The primary indicator used to measure economic growth in Canada is:

Accepted Answer

GDP

Answer

CPI

Answer

Unemployment rate

Answer

Balance of payments

Question 14

The primary goal of the Bank of Canada is to maintain:

Accepted Answer

Price stability

Answer

Economic growth

Answer

Full employment

Answer

Environmental sustainability

Question 15

Which sector is the primary contributor to Canada's gross domestic product (GDP)?

Accepted Answer

Services

Answer

Manufacturing

Answer

Natural Resources

Answer

Agriculture

Question 16

What is the primary objective of the Bank of Canada's monetary policy?

Accepted Answer

To control inflation

Answer

To promote economic growth

Answer

To manage the exchange rate

Answer

To regulate the banking system

Question 17

Which of the following is not considered a key economic indicator?

Accepted Answer

National debt level

Answer

GDP growth rate

Answer

Inflation rate

Answer

Consumer confidence index

Question 18

What is the primary reason for Canada's high level of international trade?

Accepted Answer

Abundance of natural resources

Answer

Large domestic market

Answer

Proximity to the United States

Answer

Strong manufacturing base

Question 19

What is the fundamental distinction between the public and private sectors of the Canadian economy?

Accepted Answer

Ownership

Answer

Size

Answer

Focus on profit

Answer

Level of regulation

Question 20

Which of the following is **not** considered a key economic sector in Canada?

Accepted Answer

Tourism

Answer

Agriculture

Answer

Manufacturing

Question 21

Canada engages in the most significant trade with which country?

Accepted Answer

United States

Answer

United Kingdom

Answer

Mexico

Answer

China

Question 22

Which institution holds the primary responsibility for setting interest rates and managing the money supply in Canada?

Accepted Answer

Bank of Canada

Answer

Department of Finance

Answer

World Bank

Answer

International Monetary Fund

Question 23

In Canada, which level of government has the primary responsibility for implementing fiscal policy?

Accepted Answer

Federal government

Answer

Bank of Canada

Answer

Provincial governments

Answer

Municipal governments

Question 24

What is a primary objective of Canada's monetary policy?

Accepted Answer

Maintaining price stability

Answer

Promoting economic growth

Answer

Reducing unemployment

Answer

Balancing the budget