Economics Tutorial Quiz with Correct Answers 100% Verified and Graded A+ 2026

Economics Tutorial Quiz with Correct Answers 100% Verified and Graded A+ 2026 Gross Domestic Product. Value of all goods and services produced by a country. It is used to estimate the size of an economy in a country. GDP per capita is a countries GDP divided by the population. It is a figure regarding the average standard of living of an individual member of the society. - Correct Answer Explain the meaning of the term 'GDP' and explain what it measures. Why is this useful to economists? What extra information is provided by 'GDP per capita' and why is this important? A sudden sharp reduction in the availability of money or credit from banks and other lenders. - Correct Answer Define the term 'credit crunch' and explain how the credit crunch resulting from the 2007 financial crisis led to a decline investment and consumption spending in the UK economy. Assassination of young couples willing to baby-sit each other's children, very large meaning group meaning lots of baby sitters available but it was hard to ensure all couples did their fair share. The problem was dealt with by issuing coupons entitling the bearer to one hour of baby-sitting. When babies were sat the baby sitter would receive the appropriate number of coupons from the baby-sittees. Couple with several free evenings and no plans to go out would try gather coupons for the future, this would be matched by other people running out of coupons. There came a point when hardly any coupons were in circulation. Couples who felt their reserves of coupons to be insufficient where anxious to baby-sit and reluctant to go out. One couples decision to go out was another's opportunity to babysit so opportunities to baby-sit became hard to find and couples were more reluctant to spend coupons except on special occasio - Correct Answer Describe Krugman's basic 'baby-sitting' model of the economy, laying out the analogies with the real-world economy. People stop spending so unemployment happens which leads to stress meaning mental health is poor. Government budgets increase, taxes decrease (because when unemployed you can't pay tax) meaning revenue will decrease. Poverty, crime, divorce all increase. Decline in welfare. Governments try to solve the problem because of the consequences. - Correct Answer Give reasons for why recessions are a serious social and political problem.