4. The Census Bureau recently created a new sup- plemental poverty measure, which defines the poverty threshold as the amount of money that the poorest third of Americans spend on food, clothing, shelter, and utilities. Journalist Robert Samuelson [2010] proposed the following thought experiment: Suppose that all Americans doubled their incomes tomorrow, and suppose that their spending on food, clothing, shelter, and utilities doubled as a result. What would happen to the number of people in poverty ac- cording to this new supplemental measure? Does this strike you as a desirable measure?

4. The Census Bureau recently created a new sup- plemental poverty measure, which defines the poverty threshold as the amount of money that the poorest third of Americans spend on food, clothing, shelter, and utilities. Journalist Robert Samuelson [2010] proposed the following thought experiment: Suppose that all Americans doubled their incomes tomorrow, and suppose that their spending on food, clothing, shelter, and utilities doubled as a result. What would happen to the number of people in poverty ac- cording to this new supplemental measure? Does this strike you as a desirable measure?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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