How does Gross Domestic Product (GDP) per capita differ from Gross National Income (GNI) per capita?(1 point)

Question

Responses

GNI per capita gives a more accurate indication of how much money people actually have to spend.
GNI per capita gives a more accurate indication of how much money people actually have to spend.

GDP per capita is the total wealth of the entire country regardless of population size.
GDP per capita is the total wealth of the entire country regardless of population size.

GNI per capita does not account for people who have no income.
GNI per capita does not account for people who have no income.

GDP per capita is more accurate because it includes people outside the country.

Answer 1

The correct response is:

GNI per capita gives a more accurate indication of how much money people actually have to spend.

This is because Gross National Income (GNI) per capita takes into account the total income earned by a country's residents, regardless of where that income is produced, while GDP per capita measures the economic output generated within the country’s borders, regardless of who earns it. Therefore, GNI per capita can reflect the income available to residents better than GDP per capita, particularly for countries with significant income from abroad.