Eras, Jessel B.
BSMA - 2 ECON 124 | 1:30-2:30PM | MWF
Assignment on Gross Domestic Product
Instruction: Solve for gross domestic product using the three different approaches. Show your solution
in its simplest form.
• The Final Expenditure Approach
• The Factors Income Approach
• The Industrial Origin Approach
GIVEN: at current prices (in million pesos)
1. Mining (22,810)
2. Quarrying (21,325)
3. Private Domestic Investment
•Residential Fixed (5,210)
•Business Fixed (15,260)
•Change in inventories (4,559)
4. Income of unincorporated enterprises (7,680)
5. Depreciation (Overall) (9,590)
6. Indirect business taxes, adjustments & statistical discrepancy (28,150)
7. Rental income of persons (14,695)
8. Net Interest (5,680)
9. Wages, salaries and supplements (98,320)
10. Agriculture (43,280)
11. Fishery and forestry (32,750)
12. Manufacturing (31,090)
13. Construction (15,888)
14. Government consumption & Investment purchases (19,180)
15. Net Exports
• Export (9,280)
• Import (13,840)
16. Corporate Profits before taxes
•Corporate Profit Taxes (3,690)
•Dividends (4,250)
•Undistributed Profits (3,390)
17. Transportation, communication, storage & utilities (62,820)
18. Commerce (20,579)
19. Services (23,134)
20. Trade (38,189)
21. NFIA (net factor income from abroad) (267,459)
22. Personal Consumption Expenditure
•Durable Goods (7,579)
•Nondurable Goods (67,560)
•Personal Services (19,830)
ANSWER:
FINAL EXPENDITURE APPROACH (in millions)
(22.) Personal Consumption Expenditure (in millions) 94,969,000
• Durable Goods 7,579,000
• Nondurable Goods 67,560,000
• Personal Services 19,830,000
(3.) Private Domestic Investment (in millions) 25,029,000
• Residential Fixed 5,210,000
• Business Fixed 15,260,000
• Change in mventories 4,559,000
(14.) Government consumption & Investment purchases 19,180,000
(15.) Net Exports (in millions) -4,560,000
• Export 9,280,000
• Import 13,840,000
TOTAL GROSS DOMESTIC PRODUCT (in millions)
GDP = 94,969,000 + 25,029,000 + 19,180,000 - 4,560,000
GDP = 134,618,000
INCOME APPROACH (in millions)
(9.) Wages, salaries and supplements 98,320,000
(7.) Rental income of persons 14,695,000
(16.) Corporate Profits before taxes 11,330,000
• Corporate Profit Taxes 3,690,000
• Dividends 4,250,000
• Undistributed Profits 3,390,000
(4.) Income of unincorporated enterprises 7,680,000
(21.) NFIA (net factor income from abroad) 267,459,000
(8.) Net Interest 5,680,000
(6.) Indirect business taxes, adjustments
& statistical discrepancy 28,150,000
(5.) Depreciation (Overall). 9,590,000
TOTAL GROSS DOMESTIC PRODUCT (in millions) = 442,904,000
INDUSTRIAL ORIGIN APPROACH (in millions)
(AS) Agriculture Sector 76,030,000
• Agriculture 43,280,000
• Fishery and forestry 32,750,000
(IS) Industry Sector 91,113,000
(1.) Mining 22,810,000
(2.) Quarrying 21,325,000
(12.) Manufacturing 31,090,000
(13.) Construction 15,888,000
(SS) Service Sector 144,722,000
(17.) Transportation, communication, storage & utilities 62,820,000
(18.) Commerce 20,579,000
(19.) Services 23,134,000
(20.) Trade 38,189,000
TOTAL DROSS DOMESTIC PRODUCT (in millions) = 311,865,000
