Video Cases - Part III

These questions are based on videos from the Canadian Broadcasting Corporation that accompany the textbook. In addition to whatever in-class use your instructor may have given them, they're available on this website for online viewing. If directed to do so by your instructor, you can answer the questions online and email the results.
     These videos are intended only for students using the 9th Canadian Edition of Microeconomics. To view the video, you'll require a password. Refer to page 42 in your textbook and use the first word appearing in the main text column as both 'username' and 'password.' Use of the word is case-sensitive.
     The free RealPlayer plug-in is required in order to view the videos. If needed, the plug-in can be downloaded from Real.

Child Poverty
     Synopsis: Canada has long been regarded by those in other countries as a land of "milk and honey", or promised riches. It was long thought that poverty was restricted to continents like Asia or Africa. This video addresses the tragedy of child poverty in Canada, by examining its causes and then forwarding potential solutions. Both children and teenagers are interviewed. The case study that follows will ask you to investigate the concept of the low-income cut-off (LICO) and discover characteristics of households that fall beneath this cut-off. Next, you will outline some causes of, and solutions to, the child poverty crisis. Finally, you will apply concepts four and seven of the ten key concepts to the issue of child poverty.
     Concepts Addressed in this Video Case Study: 1) Absolute Poverty 2) Relative Poverty 3) Low Income Cut-Off (LICO) 4) Market Failure 5) Positive Externality 6) Subsidy
     Required: 1) Watch the video carefully 2) Read the key economic concepts found on pages 3-4 of the text. 3) Answer the questions below, either individually or as part of a small group.

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View Child Poverty

1		What is the difference between absolute poverty and relative poverty? Which definition of poverty applies to the children and teenagers featured in the video? Explain
2		According to the textbook, what is Statistics Canada's definition of a low-income cut-off (LICO)? Go to the following Statistics Canada website: http://www.statcan.ca/english/Pgdb/famil19a.htm Which group in the chart has the highest percentage of people living below the LICO? Does this help to explain why child poverty might occur?
3		Referring to question 2 and the video, what are some of the main causes of child poverty? What are some of the solutions to child poverty outlined in the video?
4		Concept seven of the ten key concepts at the beginning of the book states: "Governments can occasionally improve the coordinating function of markets." Explain how this concept applies to child poverty by referring to the video and the section on market failure and externalities (chapter 5 in the text)
5		Concept four of the ten key concepts states that the choices you make are influenced by incentives. Why might raising the level of welfare assistance to combat child poverty affect people's incentives? What possible goal conflicts may government face? (Hint: See chapter 17—Welfare Goals and Conflicts)