What is the difference between GDP per capita and GNI per capita?

What is the difference between GDP per capita and GNI per capita?

• A. GDP per capita measures domestic economic output per person; GNI per capita adds income residents receive from abroad minus income earned by foreigners domestically.
• B. GDP per capita measures income earned abroad.
• C. GNI per capita is the same as GDP per capita.
• D. GNI per capita measures manufacturing output.

Answer: (A)

GDP per capita looks at how much is produced inside a country’s borders per person, focusing on domestic output. GNI per capita starts from that production but then adds the income residents earn from abroad and subtracts income foreigners earn domestically, giving a measure of total income available to residents regardless of where it comes from. The best choice expresses that distinction directly: domestic output per person plus net income from abroad for residents. The other ideas misstate GDP as income earned abroad, claim the two measures are the same, or describe GNI as only manufacturing output.

GDP per capita looks at how much is produced inside a country’s borders per person, focusing on domestic output. GNI per capita starts from that production but then adds the income residents earn from abroad and subtracts income foreigners earn domestically, giving a measure of total income available to residents regardless of where it comes from. The best choice expresses that distinction directly: domestic output per person plus net income from abroad for residents. The other ideas misstate GDP as income earned abroad, claim the two measures are the same, or describe GNI as only manufacturing output.