Question : 101) One efficiency-based argument in favour of government subsidies for : 1384339

101) One efficiency-based argument in favour of government subsidies for post-secondary education is that

A) the subsidy is essentially a transfer from lower-income, non-university-trained taxpayers to potentially higher-income-earning university students.

B) there are positive externalities involved in the consumption of education.

C) relative to the federal contribution, the provincial contribution to higher education is too low.

D) they would encourage people not to seek employment.

E) very few benefits from an individual’s education accrue to society as a whole.

102) In Canada, students’ tuition fees for post-secondary education account for about

A) 12% of total costs.

B) 16% of total costs.

C) 20% of total costs.

D) 50% of total costs.

E) 54% of total costs.

103) Taking all federal and provincial expenditures into account, Canada’s single most expensive social program is

A) the public health-care system.

B) the basic education system.

C) employment-insurance payments.

D) post-secondary education programs.

E) social-assistance payments.

104) Statistics Canada defines the poverty line as the level of income at which a household

A) earns less than $8850 during a calendar year.

B) spends more than 87% of its income on the three basic necessities of food, shelter, and clothing.

C) spends more than 63% of its income on the three basic necessities of food, shelter, and clothing.

D) is in the bottom 10% of income groups.

E) adjusted for family size earns less than the average family income in Canada.

105) According to Statistics Canada’s definition, the percentage of families living below the poverty line in Canada in 2009 was about

A) 25%.

B) 20%.

C) 13%.

D) 10%.

E) 4%.

106) A “poverty trap” refers to the situation where

A) low-income persons whose only income for a period of 5 or more years has been welfare benefits.

B) tax-generated disincentives exist for middle-income persons to increase their earned income.

C) low-income persons whose only income for a period of 2 or more years has been welfare benefits.

D) tax-generated disincentives exist for very-low-income persons to increase their earned income.

E) the government has imposed a negative income tax.

107) Consider the following statement: “In Canada, there will always be some families living in poverty.” Which of the following statements best explains why this statement may be true?

A) If the definition of poverty is an absolute one, then a certain percentage of families will always be poor.

B) Economic growth will never be high enough to lift all families above the low-income cut off.

C) If the definition of poverty is an absolute one, then an absolute number of families will be defined as living in poverty.

D) If the definition of poverty is a relative one, then some families will always be defined as poor relative to richer families.

E) If the definition of poverty is a relative one, then a constant number of families will always be defined as living in poverty.

108) The Employment Insurance (EI) system operates whereby

A) Canadians contribute during their working years and then receive payments when they are retired.

B) the federal government transfers funds to provincial governments.

C) any unemployed worker is paid while searching for employment.

D) the federal and provincial governments allow income-tax deductions for contributions made to special retirement funds.

E) eligible unemployed workers are paid while searching for new employment.

109) Registered Retirement Savings Plans (RRSPs) operate whereby

A) Canadians contribute during their working years and then receive payments when they are retired.

B) the federal government transfers funds to provincial governments.

C) any unemployed worker is paid while searching for employment.

D) the federal and provincial governments allow income-tax deductions for contributions made to special retirement funds.

E) eligible unemployed workers are paid while searching for new employment.

110) The Canada (and Quebec) Pension Plans (CPP and QPP) operate whereby

A) Canadians contribute during their working years and then receive payments when they are retired.

B) the federal government transfers funds to provincial governments.

C) any unemployed worker is paid while searching for employment.

D) the federal and provincial governments allow income-tax deductions for contributions made to special retirement funds.

E) eligible unemployed workers are paid while searching for new employment.