The Smith family has a monthly income of $2000,of which they spend $1300 (65 percent of their income)on food,rent,home heating,and electricity.According to Statistics Canada,which measure characterizes the Smith family as living in poverty?

Question

Quizplus · Accepted Answer

The low-income cutoff measure is the most likely measure to characterize the Smith family as living in poverty, as it compares their income to a threshold below which a family is considered to be in poverty. The fact that they spend 65% of their income on necessities suggests that they may struggle to afford other basic needs. The other measures listed are not as appropriate in this situation- the absolute measure looks at income levels but does not compare them to a poverty threshold, the market basket measure focuses on the costs of a designated set of goods and services rather than income, and the social welfare measure focuses on access to government support programs.

The Smith Family Has a Monthly Income of $2000,of Which