The table shows the GDP, gross national income (GNI) per capita, and HDI of several countries.

\begin{tabular}{|l|l|l|l|}
\hline \multicolumn{1}{|c|}{ Country } & \multicolumn{1}{|c|}{ GDP } & \multicolumn{1}{|c|}{\begin{tabular}{c}
GNI \\
per \\
capita
\end{tabular}} & \multicolumn{1}{|c|}{ HDI } \\
\hline China & 2 & 77 & 101 \\
\hline India & 10 & 124 & 136 \\
\hline Norway & 23 & 1 & 1 \\
\hline Luxembourg & 72 & 3 & 26 \\
\hline
\end{tabular}

What does the table show about the relationship between different measures of development?

A. HDI depends mostly on geographic location.
B. GDP and GNI per capita are completely unrelated measures.
C. GDP and HDI are completely unrelated measures.
D. GNI per capita better reflects the standard of living than GDP.



Answer :

The table provided consists of data on four countries including their respective GDP rankings, GNI per capita rankings, and Human Development Index (HDI) rankings. To understand the relationship between these measures of development, let’s analyze each one individually in the context of the table.

1. China:
- GDP Ranking: 2
- GNI per Capita Ranking: 77
- HDI Ranking: 101

2. India:
- GDP Ranking: 10
- GNI per Capita Ranking: 124
- HDI Ranking: 136

3. Norway:
- GDP Ranking: 23
- GNI per Capita Ranking: 1
- HDI Ranking: 1

4. Luxembourg:
- GDP Ranking: 72
- GNI per Capita Ranking: 3
- HDI Ranking: 26

Let’s break down the relationships:

1. Assessment between GDP and GNI per Capita:
- Despite China having a very high GDP ranking (2), its GNI per capita ranking is relatively low (77). This indicates that a high overall economic output does not necessarily translate to higher income per individual.
- Luxembourg, on the other hand, has a lower GDP ranking (72) but a very high GNI per capita ranking (3), displaying that smaller economies can still have high individual prosperity.

2. Assessment between GDP and HDI:
- China has a high GDP ranking but a much lower HDI ranking, reflecting that economic output alone does not ensure high development across social and human indicators.
- Conversely, Norway has a relatively lower GDP ranking but ranks first in both GNI per capita and HDI, showing that overall human development can be very high irrespective of the economic size.

3. Assessment between GNI per Capita and HDI:
- Norway’s top rankings in both GNI per capita and HDI suggest a strong correlation between high income per capita and high human development.
- Similarly, Luxembourg’s high ranking in GNI per capita and relatively high HDI ranking supports this correlation.

From this detailed analysis, we observe that the measure which best captures the true standard of living and general well-being is the GNI per capita. It reflects individual prosperity more accurately than GDP and correlates more closely with HDI measures.

Thus, the table demonstrates that:

GNI per capita better reflects the standard of living than GDP.