Week 4- Poverty

Question 1

Explain LICO

Answer 1

Low Income Cut-off

• Helps identify who are likely to be worse off than average
• Not a poverty line, but is treated as one
• 20% or more of income is spent on basics compared to average family

Question 2

What is the Market Basket Measure?

Answer 2

• Disposable incomes are below cost of predetermined basket of goods and services
• Sensitive to regional differences
• Developed by Employment and Social development Canada

Question 3

Explain Low Income Measure- After Tax.

Answer 3

• Fixed percentage (50%) of middle value adjusted household income
• Considered low-income if income is less than half of the midpoint after-tax income