The Ahluwalia-Chenery welfare index
A)is a method used to measure changes in absolute poverty.
B)shows the value judgment 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.

Question

Quizplus · Accepted Answer

The Ahluwalia-Chenery welfare index is used to show the value judgment implications of using the change in income per capita as a measure of the change in development. It specifically measures changes in the distribution of income and how they affect the welfare of individuals, taking into account changes in both the level and distribution of income. It does not measure changes in absolute poverty, inequality or GDP growth rate.

The Ahluwalia-Chenery Welfare Index