Income Distribution

• An individual with 2 kids receives child benefits from the government each month. Which types of income are these included in?

  Total and after-tax income
• An individual with 2 kids receives child benefits from the government each month. Which types of income are these not included in?


  Market income
• What does a gini coefficient of 1 mean?

  Perfect inequality
• What does a gini coefficient of 0 mean?

  Perfect equality
• What is the low income measure (LIM)?

  Measures the fraction of the population that earns less than half of the median income in a year
• What is the low income cut off (LICO)?

  The fraction of the population with income below the point at which they would spend 20% or more of their income on basic amenities more than the average family
• What is the market based measure(MBM)?

  Measures the fraction of families with income insufficient to purchase a basket of goods and services associated with a modest standard of living
• What measure is Canadas official poverty line?

  Market-Based Measure