Read the following statements and choose the CORRECT response.

(i) GDP is a specific measure of economic welfare that does NOT include aspects like leisure time, environmental quality, freedom, social justice or gender equality.

(ii) Per Capita Income includes and also indicates the level of income equality among people.

Analysis of the StatementsStatement (i) is True:Gross Domestic Product (GDP) measures the total monetary value of all finished goods and services produced within a country's borders. It is a measure of economic activity, not necessarily well-being.GDP ignores "non-market" activities like leisure time or unpaid housework.It does not account for environmental degradation (pollution) caused by production.It says nothing about the distribution of freedom, social justice, or gender equality within a society.Statement (ii) is False:Per Capita Income (PCI) is calculated by dividing the total national income by the total population:$$\text{Per Capita Income} = \frac{\text{Total National Income}}{\text{Total Population}}$$The Flaw: Because it is an average, it completely ignores income inequality.For example, if one person earns $1,000,000 and nine people earn $0, the Per Capita Income is $100,000, even though 90% of the population has no income. It does not show how wealth is actually distributed.