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

Question 1

What is one way in which social well-being and social standing are measured?

A) Income
B) Wealth of parents
C) Employment situation
D) All of the above

Answer 1

D

Question 2

Which is the following is not a source of income?

A) Investments
B) Government transfer
C) Inheritance
D) Employment insurance

Answer 2

C

Question 3

Which of the following best describes the concept of wealth?

A) A person's stock of resources or what they have accumulated over time
B) Money coming in regularly
C) A person's flow of resources
D) A person's income from personal investments

Answer 3

A

Question 4

Which if the following is not true about wealth?

A) It is associated with better health
B) It increases the likelihood of marriage
C) It can be useful when buying a home
D) It decreases people's ability to retire in old age

Question 5

What are two common sources of wealth data in Canada?

A) Canada Financial Survey and Forbes
B) Survey of Financial Security (SFS) and Forbes
C) Wealth Canada and the Survey of Financial Security
D) Canada financial Survey and Wealth Canada

Question 6

Structural inequalities that lead to wealth disparities are supported by all of the following except:

A) Ageism
B) Sexism
C) Racism
D) Activism

Question 7

Dimensions in which wealth disparities can be overserved include all of the following except:

A) Immigration status
B) Education
C) Disability
D) None of the above

Question 8

What can count as a reason for new immigrants to have less wealth than other Canadians?

A) Valued human capital
B) Coming from a country where English or French is spoken
C) Strong familiarity with investment products
D) Language differences

Question 9

How do you calculate the assets in the wealth equation?

A) Total Assets = Total Non-financial Assets - Total Financial Assets
B) Total Financial Assets + Total Non-financial Assets = Total Assets
C) Total Financial assets - Total Non-Financial Assets = Total Assets
D) Total Assets + Total Financial Assets = Total Non-financial Assets

Question 10

When looking at worth disparities, we need to look at net worth as well as:

A) Financial Assets, Housing Wealth, Total Debt
B) Housing Debt, Total Assets and Financial Debt
C) Total Assets, Total Debt, Housing Wealth
D) Housing Value, Total Assets and Financial Debt

Question 11

Net worth measures are:

A) A complete measure to analyze wealth disparities
B) A lot of information about wealth gathered in a single number
C) A representation of the total assets of individuals
D) The total investments and non-financial assets of individuals

Question 12

What is one example of a non-financial asset?

A) Money in a savings account
B) Investment funds
C) Unemployment insurance
D) Real estate

Question 13

Total debt is made up of both secured and unsecured debt. What is an example of a secured debt?

A) Mortgage
B) Installment loans
C) Credit card balances
D) Student loans

Question 14

A business loan is an example of what?

A) Non-financial asset
B) Secured debt
C) Unsecured debt
D) Business wealth

Question 15

Which one of the following is not a promoter of wealth?

A) Debt
B) Education
C) Homeownership
D) Devalued human capital

Question 16

Debt can become problematic when:

A) Levels of debt are easy to balance
B) Debt levels exceed income
C) Total income exceeds total debt levels
D) There is no risk of job loss

Question 17

What is one way in which burden debt is examined by researchers?

A) Household debt to income rations
B) Debt to mortgage ratio
C) Household debt to investments ratio
D) Income to credit market debt ratio

Question 18

What is the largest asset held by most households?

A) Education
B) Financial assets
C) Homeownership
D) Investments

Question 19

In what way has the relationship between wealth and education changed for young adults as compared to previous generations?

A) The gap has narrowed over time-economic insecurity impacts young adults across education and income levels
B) The gap has increased-higher education allows for less economic insecurity
C) The gap has stayed the same
D) There has never been a gap, economic insecurity impacts all Canadians the same way

Question 20

Which of the following is not an aspect of policy we need to pay attention to in order to understand wealth inequality and the wealth equation?

A) Policy regarding wealth
B) Policy regarding misrepresentation
C) Policy regarding housing
D) Policy regarding redistribution

Question 21

Which of the following investments are not taxed in Canada?

A) Capital gains
B) Inheritance
C) Secondary homeownership
D) Purchased goods

Question 22

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

A) Wealth tax
B) Tax-Free Savings Accounts (TFSA)
C) Registered Retirement Savings Plans (RRSP)
D) Tax deductions for mortgage holders

Question 23

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

A) It moves support for welfare away from collective institutions and toward individually held assets
B) It moves support away from homes and towards collective institutions
C) Homes and mortgages are transformed into financial assets
D) Mortgages are securitized and sold at the micro-level

Question 24

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

A) Neighbourhood decisions and economies
B) Financial investments
C) National economies and international financial markets
D) Educational debt

Question 25

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

A) Even though unemployment rose during the epidemic, housing prices and sales decreased in several places across Canada
B) Even though unemployment rose during the epidemic, housing prices and sales rose in several of Canada's major cities
C) Given that unemployment rose during the epidemic, housing prices became more affordable for low-income citizens.
D) Given that unemployment rose during the epidemic, housing prices stagnated and did not change in most of Canada's major cities

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

Wealth has greater consequences and is more stable than income.

Question 31

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

Question 32

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

Question 33

Wealthy people also tend to owe more than other people.

Question 34

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

Question 35

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.

Question 36

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

Question 37

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 38

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.

Question 39

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

Question 40

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

Question 41

Households with higher education and income tend to have greater wealth.

Question 42

Women hold equal amounts of wealth as men, but single households hold more wealth than two-adult households.

Question 43

Although net worth disparities show a clear division in wealth across Canada, some inequalities stay hidden from it.

Question 44

Households with one or more members with a disability accumulate less wealth than other households.

Question 45

Inequality is equally apparent in net worth and assets.

Question 46

Financial assets are primarily located in high-income and high-wealth neighbourhoods compared to non-financial ones.

Question 47

Households with higher levels of income have higher debt.

Question 48

Debt is always bad, and access to credit markets and debt is unimportant for wealth.

Question 49

Between 2005 and 2012, the use of short-term high-interest payday loans decreased by 27 percent in Canadian households.

Question 50

Homeownership is the largest source of debt in Canada.

Question 51

What are some barriers faced by young adults to build wealth and homeownership?

Question 52

What are the key differences between wealth and income? How do levels of wealth affect inequality?

Question 53

What is net worth? How can this be used to describe a wealthy person? How can it be used to see how wealth is distributed in a population?

Question 54

How is data on wealth collected and analyzed? What organizations provide this data and what conclusions can you make from the information they provide?

Question 55

What are total assets? How do different assets affect inequality at different levels?

Question 56

What is the difference between total secured debt and unsecured debt? How can there be positive aspects of wealth?

Question 57

How has homeownership affected wealth inequalities? How does this affect renters?

Question 58

Explain the concept of wealth. How does it perpetuate advantages and disadvantages in society? Describe how wealth is divided between Canada and what this represents for the general population.

Question 59

What are some factors that increase wealth disparities? How are Indigenous peoples, immigrants and other minorities affected by wealth disparities? Explain the challenges connected to wealth acquisition for them.

Question 60

Describe the main wealth equation and its parts and the equation for home wealth. What needs to be included to effectively calculate wealth and understand the disparities that exist among levels of wealth in Canada?

Question 61

How is discrimination evident for Black, Indigenous and other minority groups in Canada when it comes to homeownership? What about women or gender and sexual minorities?

Question 62

What type of taxation is commonly recommended by legislators? How do they affect the working class and poorer households?

Question 63

What shapes people's opportunities for advancement and prospects? What is the role of the credit market in creating inequality? How does it support a system of cumulative advantage?

Question 64

How is social inequality shaped and perpetuated? What is the role of housing in this respect?

Question 65

How does legislation affect wealth disparities in Canada? How has the restructuring of the social assistance system toward asset-based welfare affected the population?