Question

Choose the correct option.

Assertion (A): Per capita GDP is replaced by per capita GNI to measure the dimension of income while calculating HDI.

Reason (R): GNI gives a holistic picture of the value earned by a country’s people rather than the GDP.

• A. Both A and R are true, and R is the correct explanation of A.
• B. Both A and R are true, but R is not the correct explanation of A.
• C. A is true, but R is false.
• D. A is false, but R is true.

Answer 1

The correct option is A Both A and R are true, and R is the correct explanation of A.

GNI includes the income earned from overseas sources. Therefore, it gives a holistic picture of the value earned by a country’s people rather than the GDP. Hence, after 2009, the UNDP changed the indicator to study people’s lifestyle to per capita Gross National Income or the per capita GNI.