Economics · Poverty and Unemployment

Which of the following statements are correct regarding the Squared Poverty Gap (P2)? I. It squares the income shortfall to give greater weight to the poorest among the poor. II. It satisfies the transfer axiom, whereby a regressive transfer from a poorer to a less poor person increases the index. III. It is insensitive to the distribution of income among the poor, similar to the Poverty Gap Index (P1). IV. Its primary limitation is that it is less intuitive to communicate compared to other poverty measures. Choose the most appropriate answer from the options given below: