Economics Homework Help

Homework Assignment #1 Please answer the following. Please include graphs or figures where appropriate. Your work should be shown for any calculations. You may work with other students. However, every student needs to turn in their own copy and no two homework assignments should be identical

1.Merchants that accept credit cards pay the issuer of the card a percentage of the transaction. For example, for each $100 charged on a Visa card, a merchant might receive only $98. Explain both why Visa charges the fee and why the merchant pays it. You should be able to incorporate at least two of the core principles in your answer. (3 points)

2. Using the last 10 years of data from the Federal Reserve’s website reproduce Figure 2.3 on page 36 from your textbook. How have the patterns changed in the last few years? (4 points)

3. Use the most recent data from the Federal Reserve’s website reproduce Table 2.1 on page 36 from your textbook. Comment on the changes that you see.(4 points)

4. Here is a list of goods: Crabs, Olive Oil, Old Bay Seasoning, Cars, and Poker Chips. Rank these goods according to there usefulness as money. Explain why each good may or may not be an appropriate means of payment. (3 points)

5. This question involves doing a little research on your country for the final report. What is the name of your currency? Who issues the currency? Is fiat or commodity? How much money is in the economy? (Find their equivalent of M2 or as close as you can). (5 points)