Chapter 9: What is Poverty

Question 1

What is the definition of poverty?

Answer 1

The subsistence standard of living with an income not sufficient enough to purchase the bare necessities. The conditions and challenges of poverty are also considered.

Question 2

What has happened to the definition of poverty over time?

Answer 2

It has become multidimensional.

Question 3

What kind of measure is the low-income measure (LIM)?

Answer 3

A relative measure that estimates who is worse off than others.

Question 4

How does the LIM measure poverty?

Answer 4

Estimates the proportion of a selected geographical area that has substantially less income than the rest of the area. Often used at the international level.

Question 5

How does LIM define low-income families?

Answer 5

Those whose incomes are less than half the media family income in the area.

Question 6

What kind of measure is the market basket measure (MBM)?

Answer 6

Defines poverty in absolute terms by estimating if a person’s income is adequate to purchase basic goods and services.

Question 7

How does the MBM measure poverty?

Answer 7

Estimates the cost of necessities, and then compares those costs with a family’s disposable income. Usually identifies regional variations across Canada

Question 8

How does MBM define low-income families?

Answer 8

Those with a lower level of income that is needed to provide these basic necessities.

Question 9

What kind of measure is the low-income cut-off’s (LICOs)?

Answer 9

A relative measure by estimating who is worse off than others.

Question 10

How does LICOs measure poverty?

Answer 10

Identifies a minimum level of income required for a family to purchase food, shelter, and other basics. It varies depending on the size and location of families.

Question 11

Why is LICOs important?

Answer 11

It is Canada’s most widely used measure of poverty and reports on the poverty rate. It measures the depth and persistence of poverty.

Question 12

What is the depth of poverty?

Answer 12

How far a person’s income dips below the poverty line.

Question 13

What is the persistence of poverty?

Answer 13

The percentage of people living in low-income every year over a six-year period.

Question 14

In 2010, what groups were experiencing the highest rates of poverty?

Answer 14

single adults45-65, people with disabilities, lone-parent families, immigrants, and aboriginal people.

Question 15

What are some risk factors of poverty?

Answer 15

Geographical location, age, and visible minorities.

Question 16

What is the feminization of poverty?

Answer 16

Women are more likely to be poor regardless of age, ethnicity, family status, or other characteristics.

Question 17

What continues to put women at a disadvantage to be in poverty?

Answer 17

Women are still the primary unpaid caregiver, many hold part-time or temporary positions, more than 60 percent earn minimum wage, and women earn 30 percent less than male coworkers doing similar work.

Question 18

What is the status of seniors in poverty?

Answer 18

Seniors’ incomes have generally increased due to Old Age Security and other pension plans, but not enough to cover the basic goods and services.

Question 19

What creates economic hardships for seniors?

Answer 19

Economic downturns or recessions.

Question 20

What percent of children lived in poverty in 2010?

Answer 20

14 percent.

Question 21

In 1989, when did Canada want to eliminate child poverty?

Answer 21

The year 2000.

Question 22

What raises the risk of child poverty?

Answer 22

lone-parent, female-led, and visible minority families.

Question 23

What is the issue with middle-class families with high debt and few savings?

Answer 23

They could be on the brink of poverty if they experience sudden job loss, the death of a breadwinner, or any unexpected change in financial status.

Question 24

Why are children poor?

Answer 24

Their parents are poor. Many parents work full-time but do not adequately support their family.