The Ahluwalia-Chenery Welfare Index

question 22

Multiple Choice

The Ahluwalia-Chenery Welfare Index

• A)is a method used to measure changes in absolute poverty.
• B)shows the value judgement implications of using the change in income per capita as a measure of the change in development.
• C)is a method used to measure changes in inequality.
• D) is a method used to measure the growth rate of GDP.

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Definitions:

Common Stock

Represents equity ownership in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and/or capital appreciation.

Fixed Asset Turnover

A financial ratio that measures a company's effectiveness in generating sales from its fixed assets.

Net Income

The amount of a company’s profit after all expenses, taxes, and costs have been subtracted from total revenue.

Profit Margin

Profit margin is a financial metric that calculates the percentage of revenue that exceeds the costs of production, indicating how much profit a company makes for each dollar of sales.