Exam 4: Poverty and Income Inequality: Measures and Trends

Which of the following explains the differences in the proportion of income paid in consumption taxes between low-earning and high-earning families?

The low-income cut-off, according to Statistics Canada, constitutes the de facto poverty line.

What conclusion is best supported by analyzing the LICO and the LIM since the 1970s in Canada?

Government transfers do not include:

Which of the following is a measurement for relative poverty that is used by international organizations?

The low-income cut-off differs from other poverty measures in that it focuses on consumption rather than income.

The advantage of having a single institution collect low-income data is that the data are consistent and reliable year after year, enabling accurate assessments of change over time.

Which of the following is not a criticism of relative poverty measures?

Why is it argued that choosing any poverty indicator makes debates about poverty contentious, highly political and perhaps unresolvable?

What measurement of poverty do you find most suitable for use in Canada in the twenty-first century? Why? How is your perspective shaped by the politicization of poverty in Canada?

The only discernable fluctuations in poverty rates in Canada are triggered by the recessions of 1981, 1990, and 2008.

The COVID-19 pandemic has been exacerbating pre-existing social inequalities.

High-income earners are more likely to own homes and send their children to university, and are benefiting from tax exemptions. Low-income earners have less opportunity to take advantage of:

How is absolute poverty measured? Outline one critique and one support of this measure.

Refer to Table 4.1 in your textbook and find the low-income cut-off for your situation. What is the income level? What would living below that cut-off look like?

Think about the kinds of government transfers that are typically distributed to lower-income families such as, social assistance and employment insurance programs. How do these help families and individuals in Canada? What effects might this have if these transfers ceased to be distributed?

The difference between measures of absolute poverty and relative poverty are the difference between mere survival and a healthy existence.

Low-income earners are more likely to benefit from exemptions to consumption taxes.

From the 1950s through the late 1970s, Canadian individuals and families experienced declining income.

When looking at the share of income distributed to the lowest quintile, it is clear that Canada is more redistributive than Sweden.