Final answer:
The Low-Income Measure (LIM) and Market Basket Measure (MBM) are the two primary measures used in Canada to define poverty, focusing on income distribution and cost of living respectively.
Step-by-step explanation:
In Canada, the two basic measures for defining poverty are the Low-Income Measure (LIM) and the Market Basket Measure (MBM). The LIM is a calculation that considers a household as impoverished if its income is significantly below the median income of all households, implying that they have less economic power than the average. The MBM, on the other hand, is based on the cost of a specific 'basket of goods' that represents a basic standard of living, and it varies by community and family size. If a household cannot afford this basket, they are considered to be living in poverty.
The LIM focuses on income distribution within the population to determine poverty status, enabling comparisons between different segments. The MBM accounts for the cost of actual goods required for a basic quality of life, allowing for regional variations in the cost of living. These poverty measures are essential for understanding economic inequality, assessing the effectiveness of social policies, and determining where government support might be needed.