Expenditure and Income Approach

Spending by firms and households on capital and long-term goods

• Consumption

• Investments

• Government spending

• Net exports

All spending made for public projects

• Consumption

• Investments

• Government spending

• Net exports

Purchase of goods by individuals and households

• Consumption

• Investments

• Government spending

• Net exports

The 2nd step in solving for the GDP using Expenditure Approach

• Identify the different expenses incurred by the economy as well as their respective monetary costs.

• Add together all of the expenses to find the GDP.

• Multiply each expenditure by its respective monetary cost.

• Deduct the import from export

In a given year, the economy produces 150 chairs that cost ₱ 350 each, 12 production equipment that cost ₱ 10,500 each, shipped 2,500 pieces of banana from Taiwan at ₱ 450 each, 11 road repair projects that cost ₱ 110,000 each, and finally exports worth ₱1,000,000 . What is the GDP of the economy for that year?

(a)  

In a given year, the economy produces 300 books that cost ₱ 550 each, 15 production equipment that cost ₱ 15,500 each, shipped 1,500 pieces of onions to China at ₱ 150 each, 15 school building projects that cost ₱ 170,000 each, and finally received goods worth ₱ 700,000 from Saudi. What is the GDP of the economy for that year?

• ₱ 2,472,500

• ₱ 3,172,500

• ₱ 3,422,500

• ₱ 3,872,500

In a given year, the economy produces 150 chairs that cost ₱ 350 each, 12 production equipment that cost ₱ 10,500 each, shipped 2,500 pieces of banana to Taiwan at ₱ 450 each, 11 road repair projects that cost ₱ 110,000 each, and finally exports worth ₱ 1,000,000 . How much is the Total Government Spending?

• ₱ 52,500.00

• ₱ 1,210,000.00

• ₱ 126,000.00

• ₱ 1,000,000.00

In a given year, the economy has 110 security guards who earn ₱ 280,000 each, with 99 of them earn additional income through the rental of condominium units at ₱ 320,000 each, while the rest earned interest from capital goods worth ₱ 220,000 each. The economy also has 7 malls who report profits of ₱ 450,000 each. What is the GDP of the economy for that year?

• ₱ 67,050,000.00

• ₱ 68,000,000.00

• ₱ 68,050,000.00

• ₱ 69,000,000.00

In a given year, the economy has 17 hairstylists who earn ₱ 170,000 each, with 10 of them earning additional income through the rental of apartment units they own which amounts to ₱ 80,000 each, and the rest earn ₱ 30,000 each. The economy also has 4 spas who report profits of ₱ 300,000 each. What is the GDP of the economy for that year?

(a)