Multiple choice

Assertion (A) : Sen's P-measure is preferred both of Head Count ratio and the poverty gap ratio. Reason (R) Sen won the 'Nobel prize'.

  1. Both (A) and (R) are true and (R) is the correct explanation

  2. Both (A) and (R) are true, but (R) is not the correct explanation of (A)

  3. (A) is false, but (R) is true

  4. Both (A) and (R) are false

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Sen's P-measure is indeed preferred over both Head Count ratio and poverty gap ratio because it combines information about the extent of poverty (number of poor) and its depth (average poverty gap). Sen did win the Nobel prize in Economics in 1998, but this fact doesn't explain why P-measure is methodologically superior.