ECOCB/535 Competency 2 Assessment and Rubric

Course Title: The Digital Economy

Competency Assessment Title: Corrective Actions: The Federal Reserve and Government Intervention Programs

Assignment Directions
Assume the role of a business consultant helping interns understand the finer points of economics. You have been tasked with developing a report
comprised of two parts. The goal of your report is to help the interns focus on real world application highlighting corrective actions by the Federal
Reserve and a government intervention program during the time of crisis.
Create an analysis incorporating the following:
Part 1: Federal Reserve
Choose 1 of the following topics related to the Great Recession:
• The housing price bubble, collapse, foreclosures, bailout of underwater mortgages
• Subprime mortgages and derivatives, bailout of FNMA, Freddie Mac, and AIG
• The banking industry crisis, bailout of commercial and investment banks
Write a 500- to 750-word analysis (Part 1 of your report) of 1 of the following corrective actions taken by the Federal Reserve as a result of the
crisis:
• Quantitative easing
• Purchase of toxic assets from financial institutions
• Paying interest on reserve balances
Address the following in your analysis:
• Actions taken by the Federal Reserve to mitigate the crisis
• How the corrective action helped to restore stability to the financial system and how it should prevent recurrence of a similar crisis
Note: Use of charts and graphs is encouraged, with appropriate citations. Any charts or graphs retrieved from the Federal Reserve Bank of St.
Louis FRED website may only be included when the data sources used by FRED are U.S. government sources, such as the Bureau of Economic
Analysis or the Bureau of Labor Statistics.

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 ECOCB/535 Competency 2 Rubric
Page 2 of 5

Cite at least 2 academically credible sources.

Part 2: Government Intervention Program
Review the Competency 2 Resources: The Roles of Government in the Economy.
Analyze 1 of the following government intervention programs:
• Counter cyclical fiscal policies (countering economic disruptions such as the housing bubble and the Great Recession)
• U.S. agriculture support programs
• Assistance for low Income families (choose 1):
o Housing vouchers
o Earned Income Tax Credit (including Child Tax Credit)
o Supplemental Nutrition Assistance Program (SNAP)
• Low-income health care (choose 1):
o Medicaid (including Children's Health Insurance Program).
o Affordable Care Act expansion
• Social insurance programs (choose 1):
o Old Age, Survivors, and Disability Insurance (OASDI)
o Medicare
o Unemployment insurance
Now that you have identified a government intervention and the market failure leading up to this intervention you are ready to continue moving
forward.
Write a 750- to 1,050-word summary of your analysis (Part 2 of your report) in which you address the following:
• Analyze the arguments for government intervention versus those for market-based solutions. Hint: See the information about market
failures.
• Examine who has been helped and who has been hurt by the selected government intervention.
• Examine externalities and unintended consequences of the intervention.
• Explain whether the cost of the intervention you selected, as a share of GDP or the number of participants, is increasing, decreasing, or
varying with the state of the economy. Your analysis should be based on the cost trend (or number of participants) since 2000 or since its
inception if after 2000.

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 ECOCB/535 Competency 2 Rubric
Page 3 of 5

• Analyze credible economists’ opinions on the success or failure of the intervention in achieving its objectives.
• Recommend whether the program should be continued as is, discontinued, or modified based on your conclusions. Defend your
recommendation.
Note: Use of charts and graphs is encouraged with appropriate citations. Any charts or graphs retrieved from the Federal Reserve Bank of St.
Louis FRED website may only be included when the data sources used by FRED are U.S. government sources such as the Bureau of Economic
Analysis or the Bureau of Labor Statistics.
Cite at least 2 academically credible sources.
Compile Parts 1 and 2 into one report.
Submit your report.

Copyright 2021 by University of Phoenix. All rights reserved.


Competency Assessment Rubric
Assignment/Performance
Criteria
1. Pt. 1 – Federal Reserve:
Mitigating the Crisis
(weight 12%)
2. Pt 1– Corrective Actions
(weight 14%)
3. Pt. 2 – Government
Intervention: Argument
(weight 12%)
4. Pt 2 – Government
Intervention: Helped and
Hurt
(weight 12%)
5. Pt 2 – Externalities and
Consequences
(weight 12%)
Mastery
100%
Thoroughly analyzed the actions
taken by the Federal Reserve to
mitigate the chosen crisis.
Thoroughly analyzed how the
corrective action helped to
restore stability to the financial
system for the chosen crisis and
how it should prevent recurrence
of a similar crisis.
Thoroughly analyzed the
arguments for government
intervention.
Thoroughly examined who has
been helped and hurt by the
intervention program.
Thoroughly examined
externalities and unintended
consequences of the selected
intervention.
Copyright 2021 by University of Phoenix. All rights reserved.
Meets Expectations
85%
Partially analyzed the actions taken
by the Federal Reserve to mitigate
the chosen crisis.
Partially analyzed how the corrective
action helped to restore stability to
the financial system for the chosen
crisis and how it should prevent
recurrence of a similar crisis.
Partially analyzed the arguments for
government intervention.
Partially examined who has been
helped and hurt by the intervention
program.
Partially examined externalities and
unintended consequences of the
selected intervention.
ECOCB/535 Competency 2 Rubric
Page 4 of 5
Not Met
0%
Narrowly analyzed the actions taken
by the Federal Reserve to mitigate
the chosen crisis or no attempt was
made to analyze the actions taken
by the Federal Reserve to mitigate
the chosen crisis.
Narrowly analyzed how the
corrective action helped to restore
stability to the financial system for
the chosen crisis and how it should
prevent recurrence of a similar crisis
or no attempt was made to analyze
how the corrective action helped to
restore stability to the financial
system for the chosen crisis and how
it should prevent recurrence of a
similar crisis.
Narrowly analyzed the arguments for
government intervention or
no analysis was made.
Narrowly examined who has been
helped and hurt by the intervention
program or no attempt to examine
who has been helped and hurt by
the intervention program selected
was made.
Narrowly examined externalities and
unintended consequences of the
selected intervention or no attempt
to examine externalities and
unintended consequences of the
selected intervention was made.

Assignment/Performance Mastery
Criteria 100%
6. Pt 2 – Cost of Thoroughly analyzed whether
Intervention cost of the intervention selected
(weight 12%) as a share of GDP or the number
of participants had increased,
decreased, or varied with the
state of the economy, based on
the cost trend (or number of
participants) since its inception
or since 2000.
7. Pt 2 – Economists’ Thoroughly analyzed credible
Opinions economists’ opinions on the
(weight 12%) success or failure of the
intervention chosen in achieving
its objectives from a creative and
innovative perspective.
8. Pt 2 – Recommendation Thoroughly defended
(weight 14%) recommendation about whether
the program should be continued
as is, discontinued, or modified
in a creative and insightful way.
Copyright 2021 by University of Phoenix. All rights reserved.
Meets Expectations
85%
Partially analyzed whether cost of
the intervention selected as a share
of GDP or the number of participants
had increased, decreased, or varied
with the state of the economy, based
on the cost trend (or number of
participants) since its inception or
since 2000.
Partially analyzed credible
economists’ opinions on the success
or failure of the intervention chosen
in achieving its objectives.
Partially defended recommendation
about whether the program should
be continued as is, discontinued, or
modified.
ECOCB/535 Competency 2 Rubric
Page 5 of 5
Not Met
0%
Narrowly analyzed or no attempt
was made to analyze whether cost
of the intervention selected as a
share of GDP or the number of
participants had increased,
decreased, or varied with the state of
the economy, based on the cost
trend (or number of participants)
since its inception or since 2000.
Narrowly analyzed or no attempt
was made to analyze credible
economists’ opinions on the success
or failure of the intervention chosen
in achieving its objectives.
Narrowly defended recommendation
about whether the program should
be continued as is, discontinued, or
modified or no attempt to make a
recommendation or did not defend
recommendation about whether the
program should be continued as is,
discontinued, or modified was made.