Consider the following statements:

Assertion (A): A rise in per capita GNP always reflects an improvement in living standards.

Reason (R): Income levels are fundamental metrics of Economic development.

Which of the statements is/are correct?

Assertion (A) is false: A rise in per capita Gross National Product (GNP) does not always reflect an improvement in living standards. Per capita GNP is simply an average (Total GNP divided by Total Population). It fails to account for income inequality. If the economic growth is concentrated entirely in the hands of the top 1% of the population, the per capita GNP will rise, but the living standards of the general public will remain stagnant or even worsen. It also ignores environmental degradation, health, and education quality.