The Ahluwalia-Chenery Welfare Index

question 16

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.

---

Definitions:

Economic Fluctuations

Variations in the level of economic activity over a period of time, often characterized by periods of growth (expansions) and contraction (recessions).

Retrenchment Strategy

A business strategy focused on reducing the scale or scope of a corporation's operations to become more financially stable.

Adaptation Model

A theoretical framework that explains how individuals adjust to changes or challenges in their environment over time.

Related Diversification

A growth strategy where a business expands its operations into areas that are similar to its existing operations, aiming to leverage its existing strengths and capabilities.