transfer payment
A payment to an individual, a firm, or an organization that is not made in
exchange for a good or service.
equalization payments
Transfers of funds from the federal government to the low-income
provinces.
demogrants
Social benefits paid to anyone meeting only minimal requirements such
as age or residence; in particular, not income-tested.
income-tested benefits
Social benefits paid to recipients who qualify because their income is less
than some critical level.
poverty line
An estimate of the annual family income that is required to maintain a
minimum adequate standard of living.
poverty trap
Occurs whenever individuals have little incentive to increase their pre-tax
income because the resulting loss of benefits makes them worse off.
open economy
An economy that engages in international trade.