ECO/561 WEEK 2 ASSIGNMENT AND REQUIREMENTS
• Student Supplemental Textbook Materials
McConnell, C.R., Brue, S.L., & Flynn, S.M. (2015) Economics: Principles,
problems, and policies (20th ed). Boston, MA: McGraw-Hill/Irwin.
HERE ARE THE CHAPTERS AND THE PAGES THAT NEED TO BE READ
Required Learning Activities
• Economics, Ch. 2: The Market System and the Circular Flow Read pages 32-43
• Economics, Ch. 4: Market Failures: Public Goods and Externalities Read pages
90-107 of Economics.
• Economics, Ch. 5: Government’s Role and Government Failure
• Economics, Ch. 6: Elasticity Read pages 134-149 of Economics.
• Economics, Ch. 32: Money, Banking, and Financial Institutions Read pages 716720 of Economics.
HERE IS THE ASSIGNEMT AND REQUIREMENTS BELOW:
Purpose of Assignment
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.
Resources: Tutorial help on Excel® and Word functions can be found on the
Microsoft® Office website. There are also additional tutorials via the web offering
support for Office products. Using the University Library, EBSCOhost, or ProQuest
data bases, locate up to three different articles/publications and/or use The
Economist Online from the University Library to examine one case of significant
government intervention as it relates to your current industry of employment or
an industry in which you are interested in working. You may access EBSCOhost,
ProQuest or The Economist Online through the University Library homepage:
1. Click on the Library tab.
2. Click on the underlined University Library link.
3. Click on General Resources under Library Resources.
4. Click on either EBSCOhost or ProQuest.
5. Go back Library Resources list.
6. Click on View All Resources Alphabetically.
7. Click on Economist.com.
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
• 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
• Bailout of U.S. auto makers during the Great Recession
• Social Security retirement benefits
Develop a minimum 10-slide Microsoft® PowerPoint® presentation including
very 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
• Examine who may be helped and who may be hurt by the selected government
• 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
• Evaluate the success or failure of the intervention in achieving its objectives and
• 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.
Supporting Material: Government Intervention Grading Guide
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