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1. ECO 561 Week 2 Assignment Government Interventions
(Bailout of U.S. Auto Makers) NEW
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ECO 561 Week 2 Assignment Government Interventions (Bailout
of U.S. auto makers) NEW
The theory of market economies emphasizes freedom of choice
and limited government intervention. The classic argument for
government intervention is market failure - the inability of the
market economy to correct itself from a dysfunctional state (such
as the Great Depression).
Students will examine articles from the University library to
analyze real-world examples of U.S. government intervention
programs and apply current week readings to make intelligent
conclusions about the economic policies.

2. Examples of intervention programs you may select, but are not
limited to:
• US agriculture support programs
• Low income support programs (Food Stamps, Earned Income
Tax Credit, Child Tax Credit, and Temporary Assistance to Needy
Families)
• Medicaid, Children's Health Insurance Program, The Affordable
Care Act (Obamacare)
• Low-income rent controls and housing vouchers
• Government promotion of renewable energy sources to
discourage use of fossil fuels such as coal and oil
• Unemployment Insurance
• Bailout of U.S. banks and other financial institutions during the
Great Recession

3. • Bailout of U.S. auto makers during the Great Recession
• Social Security retirement benefits
Develop a minimum 10-slide Microsoft® PowerPoint®
presentation including detailed speaker notes or voiceover
including the following:
• Describe the intervention and detail its history.
• Analyze the arguments for government intervention as opposed
to arguments for market-based solutions. Hint: See the
information in our course textbook on market failures.
• Examine who may be helped and who may be hurt by the
selected government intervention.
• Examine externalities and/or unintended consequences of such
intervention.
• Determine the cost trend of the intervention program since its
implementation including whether costs are increasing,
decreasing, or vary with the state of the economy.
• Evaluate the success or failure of the intervention in achieving
its objectives and develop conclusions.

4. • Recommend whether the program should be continued as is,
discontinued, or modified and defend your recommendation.
Note: The use of tables and/or charts to display economic data
over the time period discussed is highly encouraged. However, if
your source includes the copyright symbol, which looks like this:
©, then you should not copy any table and/or charts from that
source. You could use, but are not required to use, charts/graphs
retrieved from the Federal Reserve Bank of St. Louis FRED web
site as long as the data sources used by FRED to create those
charts are government sources such as the Bureau of Economic
Analysis or the Bureau of Labor Statistics.
Cite a minimum of three scholarly, peer-reviewed references.
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
SupportingMaterial:Government Intervention Grading Guide