In this paper you will analyze the justification and effectiveness of government subsidies. Find an example of an industry that is subsidized by the U.S. government and address the following:
Explain why the U.S. government subsidizes the industry. 5 points
Describe how the subsidy alters the market outcome (address issues like the production possibility curve, quantity supplied and demanded and price). 5 points
Explain who gains and who loses from the government intervention. Address any beggar-thy-neighbor issues. 5 points
Explain why you think the subsidy is or is not justified. 5 points
Note: Your assignment must be in expository essay form, comply with APA style formatting, be 3-7 pages long (not counting cover and references pages), and in MS Word
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