Question

question 13 of 25

one effect of the obama administrations bailout of the auto industry was that:

a. it caused the auto industry to collapse but had no effect on layoffs.
b. it saved some auto jobs but caused the auto industry to close factories.
c. it prevented widespread layoffs and kept the auto industry from collapsing.
d. it forced the auto industry to shut its factories in the united states and move overseas.

Explanation:

Analyze the historical context of the 2009 auto bailout

The Obama administration's restructuring and financial rescue of General Motors and Chrysler (the auto industry bailout) aimed to prevent a systemic collapse of the American manufacturing sector during the Great Recession.

Evaluate the given options against historical outcomes

• A is incorrect: The bailout did not cause the industry to collapse; it prevented it.
• B is incorrect: While some factories closed during restructuring, the primary goal and effect was saving the industry as a whole, not causing closures.
• C is correct: By providing government loans and overseeing structured bankruptcies, the intervention successfully prevented a catastrophic collapse of the major automakers and saved hundreds of thousands of supply-chain and manufacturing jobs from widespread layoffs.
• D is incorrect: The bailout did not force the industry to move entirely overseas; it preserved domestic manufacturing bases.

Answer:

• (A) it caused the auto industry to collapse but had no effect on layoffs.
• (B) it saved some auto jobs but caused the auto industry to close factories.
• (C) it prevented widespread layoffs and kept the auto industry from collapsing. (Correct answer)
• (D) it forced the auto industry to shut its factories in the United States and move overseas.