Statistics Canada uses three measures of low income. The first identifies families that spend at least 20 percentage points more of their after-tax income on food, clothing, and shelter than the average family of the same size. This measure is called:
A) low income cut-off
B) low income measure
C) market basket measure
D) twenty percent measure

Question

Quizplus · Accepted Answer

This measure is specifically called the low income cut-off (LICO), which identifies families who have to spend a larger proportion of their income on basic necessities compared to the average family. The other choices (B, C, D) refer to different measures of low income used by Statistics Canada.

Statistics Canada Uses Three Measures of Low Income