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What is the benefit of livelihood diversification?

Answer and explanation

Correct answer: Reducing risk by creating many income sources

Livelihood diversification means using more than one activity or income source to support a household. For example, a family may combine farming with animal rearing, small trade, wage work, or a service activity. If one source becomes weak because of crop failure, illness, seasonal unemployment, or changing prices, another source may continue to provide support. Diversification therefore makes income less dependent on a single uncertain activity.

Option C states this benefit directly: it creates several income sources and reduces risk. Option A would increase vulnerability by depending on only one source. Leaving all skills and stopping future planning do not strengthen a livelihood. Diversification does not guarantee equal income every time, but it generally improves security and coping capacity. Thus, option C is correct.

Related tags

Livelihood-DiversificationRiskIncome

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