AP Macroeconomics - Arlington Public Schools


28 Οκτ 2013 (πριν από 4 χρόνια και 8 μήνες)

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AP Macroeconomics

Daily Focus Objective or Question:

How does the Income Approach differ
from the Expenditure Approach?

Mr. Eric W. Breighton Underhill, All Rights Reserved

Arlington Public Schools, Yorktown High School

The Income Approach

“The method that adds all the income
generated by the production of final goods
and services to measure the gross
domestic product” (McConnell G11)


Wages (business and government)

The largest portion of national income

Benefit Payments

Insurance Programs

Pension Funds

Flexible Spending Accounts

General Welfare Funds for Workers


Income that is directly related to property

Collected by either households or
businesses who own the property

Net Rent = Gross Rental Income

Depreciation of Property Value


Income made by financial institutions on

Interest on Savings Accounts

Bond Interest

Certificates of Deposit

Proprietors’ Income

“Profits is broken down by the national
income accountants into two accounts:
proprietors’ income …. and corporate
profits.” (McConnell 112)

Net Income from Sole Ownership

Net Income from Partnership

Unincorporated Businesses

Corporate Profits

These profits can be divided into 3

Income taxes


Undistributed Profits

Taxes on Production and Imports

Sales Taxes

(at the register)

Excise Taxes

(weight tax for trucks on

Business Property Taxes

(on the

Licenses (professional & permission)

Customs Taxes (when you travel & import
items into the USA)