Question 1

Which of the following investments are not taxed in Canada?

Accepted Answer

Inheritance is not taxed in Canada. However, Capital gains (A), Secondary homeownership (C) and Purchased goods (D) are all subject to taxation.

Question 2

Which of the following is not a common form of taxation recommended by legislators?

Accepted Answer

The answer of Which of the following is not a...

Question 3

What is one of the effects of the restructuring of the social assistance system toward asset-based welfare?

Accepted Answer

Asset-based welfare focuses on helping individuals accumulate assets such as savings, homes, or investments to provide long-term security and independence rather than relying solely on government assistance. This means that instead of providing support through collective institutions such as public housing or social services, individuals are incentivized to hold and invest in assets that can provide financial stability. This shift places more responsibility on individuals to manage their own finances and accumulate assets, rather than relying on government support.

Question 4

Housing decisions are not only about housing, but also influence:

Accepted Answer

The answer of Housing decisions are not only about housing,...

Question 5

The pandemic exposed many of the inequalities experienced in Canadian society. It also reinforced the importance of housing in which of the following ways?

Accepted Answer

The pandemic led to an unexpected increase in housing prices and sales in many of Canada's major cities, despite rising unemployment rates. This highlighted the importance of housing and the inequalities in access to it, as many people struggled to afford homes during this time.

Question 6

Social scientists often rely on people's incomes to measure everything from social class to economic wellbeing to poverty.

Accepted Answer

Social scientists commonly use income as a metric for various measures related to socio-economic status, such as social class, economic wellbeing, and poverty.

Question 7

Wealth tells us about a person's flow of resources.

Accepted Answer

Wealth refers to the stock of assets or resources a person owns, whereas income describes the flow of resources.

Question 8

Social assistance, old age security and the Canada Pension Plan are examples of wealth.

Accepted Answer

Social assistance, old age security and the Canada Pension Plan are examples of social welfare programs or social safety nets, not forms of wealth. Wealth refers to valuable assets or resources that can be used to create income or provide financial security.

Question 9

Most people's primary income source is employment through the labour market.

Accepted Answer

This is generally true for the majority of people, as employment through the labour market is the traditional way of earning a living for most individuals. However, some people may have alternative sources of primary income such as investments, owning their businesses or properties, or receiving government benefits.

Question 10

Wealth has greater consequences and is more stable than income.

Accepted Answer

Wealth refers to the accumulation of assets and resources over time and is generally more stable than income, which refers to the flow of money earned through work or investments. Wealth can provide a cushion against financial shocks and can be passed down through generations, while income can be more variable and subject to external factors such as job loss or market fluctuations.

Question 11

Sociologists often pay more attention to labour markets, but credit markets also play an important role in generating wealth inequality.

Accepted Answer

While labour markets have a significant impact on wealth inequality, credit markets also play a crucial role. Access to credit can determine who has the ability to invest in assets that appreciate in value, such as homes or stocks, which can ultimately lead to significant wealth accumulation. However, those without access to credit or who are burdened by high levels of debt may struggle to accumulate wealth, perpetuating inequality.

Question 12

Wealth can be directly passed on to children, which can support intergenerational equality.

Accepted Answer

Wealth can indeed be passed on to children, but this often leads to intergenerational inequality, as it can amplify disparities between those who inherit wealth and those who do not.

Question 13

Wealthy people also tend to owe more than other people.

Accepted Answer

Wealthy people often have higher levels of debt due to their ability to access credit and their investments in assets such as real estate and business ventures.

Question 14

In Canada in 2019, the upper 20 percent of the population held -0.01 percent of the total wealth.

Accepted Answer

This statement is not possible as it suggests that the top 20 percent of the population has a negative share of the total wealth, which is not logical.

Question 15

Net worth in Canada has been relatively stable over the past twenty years, yet the average net worth of the top quintile has increased substantially.

Accepted Answer

According to data from Statistics Canada, the overall net worth in Canada has remained relatively stable over the past two decades. However, the average net worth of the top 20% (or quintile) of Canadians has increased significantly, while the net worth of the bottom 20% has remained relatively stagnant.

Question 16

The Survey of Financial Security (SFS) provides very good data on the whole population including that of very wealthy people.

Accepted Answer

The Survey of Financial Security (SFS) is more limited in capturing data on the very wealthy due to challenges such as underrepresentation in sample surveys and reluctance to disclose financial information, making it less effective in providing detailed data on the wealth distribution at the very top.

Question 17

Wealth in Canada is distributed less equally than income and most wealth gains over the past two decades have gone to the wealthiest Canadians.

Accepted Answer

According to various studies and reports, it is true that wealth in Canada is distributed less equally than income and most wealth gains over the past two decades have gone to the wealthiest Canadians.

Question 18

Indigenous peoples face some of the most severe wealth disadvantages, which derive from historical land and resource confiscation as well as current prejudice inside a colonial settler-state country.

Accepted Answer

Indigenous peoples have historically faced land and resource confiscation, as well as ongoing prejudice and discrimination within colonial settler-state countries, leading to severe wealth disadvantages. This has been documented in numerous studies and reports.

Question 19

Immigrant families, no matter their origin, can narrow the homeownership and wealth gap over time.

Accepted Answer

The answer of Immigrant families, no matter their origin, can...

Question 20

Recent immigrants to Canada hold, on average, the same amount of wealth as other Canadians.

Accepted Answer

Recent immigrants to Canada typically have lower levels of wealth than other Canadians, as they are often still establishing themselves in their new country.

Quiz 3: Breaking Down the Wealth Equation: Housing, Assets, and Debt