You are on page 1of 4

Arab Open University

Tutor Marked Assignment
Cut off Date: December 8, 2016

This TMA is an essay based on a labour market case. It is marked out of

100 and is worth 20% of the overall assessment component. This TMA
requires you to apply course concepts to your own experience and to
discuss the economic implications of such an application. Please read the
following essay first, then follow the instructions on the following page:

'The World As We Know It Is Going Down'

By Marc Pitzke in New York
Panic is the word of the hour on Wall Street. For traders, now might just be the
worst of times. The original plan actually called for humor. The stock traders
could have used a bit of comic relief. But it was not to be. Instead of Christy
Carlson Romano, a NYSE employee in a joyless gray suit stood on the balcony
and silently pressed a button. The bell rang and he disappeared. No waving, no
clapping, none of the usual jubilation. By the end of the day, no one was in the
mood for laughter. The bad news on Wall Street was coming thick and fast. All
the US indexes were crashing again after Tuesday's brief and deceptive
breather. In its wild, rollercoaster ride, the Dow Jones lost about 450 points,
which was almost as much as it lost on Monday, the most catastrophic day on
US markets since 2001. Investors were turning their back to the market in
droves and fleeing to safer pastures. The price of gold broke its record for the
highest increase in a one-day period.
And then came the announcement that would dominate all of Thursday's
market activities: Morgan Stanley -- the venerable Wall Street institution and
one of the last two US investment banks left standing -- had lost massive
amounts and was fighting for survival. Media reports were saying that it was
even in talks about a possible bail-out or merger. Rumor had it that possible
suitors might include Wachovia or China's Bank Citic.
In fact, it really does look as if the foundations of US capitalism have shattered.
Since 1864, American banking has been split into commercial banks and
investment banks. But now that's changing. Bear Stearns, Lehman Brothers,
Merrill Lynch -- overnight, some of the biggest names on Wall Street have
disappeared into thin air. Goldman Sachs and Morgan Stanley are the only

"Nothing will be like it was before," said James Allroy, a broker who was brooding
over his chai latte at a Starbucks on Wall Street. "The world as we know it is
going down."
Many are drawing comparisons with the Great Depression, the national trauma
that has been the benchmark for everything since. "I think it has the chance to
be the worst period of time since 1929," financing legend Donald Trump told
CNN. And the Wall Street Journal seconds that opinion, giving one story the title:
"Worst Crisis Since '30s, With No End Yet in Sight." But what's really happening?
Is this the beginning of the end? Or is it just a painful, but normal cycle
correcting the excesses of recent years? Does responsibility lie with the ratings
agencies, which have been overvaluing financial institutions for a long time? Or
did dubious short sellers manipulate stock prices -- after all, they were suspected
of having caused the last stock market crisis in July.

Guidance notes for TMA:

The above questions should be discussed based on what you learned
in Ch. 1, section 2 (Industrial Capitalism, markets and economics),
listed in your course materials DD309 (Doing Economics). The
challenge in your essay is to cover its most significant aspects within
the specified word count. Your essay should be well organized, with a
clear cut layout of an introduction, a body and a conclusion.
The aim of this TMA is to encourage students to develop their skills of noticing
language in use. This will help them learn how to use new and important words and
concepts and become more fluent in writing about economics. Economists show the
imperfect nature of financial institutions to deal with market imperfections. Chapter 1 of
this textbook indicated that One result of this financial and economic crisis was a
heated public debate about the role of markets and governments in capitalist
economies. Other economists conclude that We have seen something of the past and
the present; what about the future? If we still live in the age of industrial capitalism as
the dominant economic system of human society, then do we live near the beginning of
that age or near the end of it?
Students should answer these questions. They should develop a well-rounded view of
industrial capitalism and the economics and ethics of markets. This background should
prove useful to them in writing this TMA, which should be between 1200 and 1400
words in length. Students are expected to explain the reasons behind the financial crisis
and show its implications. They may concentrate on the following steps:

Start with an Introduction: Define the problem?

Address the question.

Show the importance of the issue you are going to write about, by using one or
more of the following approaches.
o Review the literature critically.
o Read case studies, look at newspapers and apply from your work
o Try to use quantitative approach in your analysis: collect data, classify
types of incidents, produce analyses, and make recommendations based
on analysis. This is an optional use.
o Turn your data into graphs and analyze the content of the graphs.

Make sure that you acknowledge your sources by including academic references
in your essay.

End your essay with a conclusion summarizing your findings

Make sure that you list all your references at the end of your TMA.

Your source of references could be: Books, Newspapers, Journals, Internet sites
or Conference proceeding.


Arab Open University

Tutor Marked Assignment (TMA)
Academic Year



Semester : Second


Program: Business Studies

Course Title: Economics and Economic Change

Course Code: DD309A

Student Name:

Student ID:

Section Number:

Tutor Name:
Awarded Mark:

Allocated Marks



Mark details


Deducted Marks




Word Count



Students Total Mark

Notes on plagiarism:

According to the Arab Open University By-laws, the following acts represent cases
of cheating and

Verbatim copying of printed material and submitting them as part

of TMAs without proper academic acknowledgement and
Verbatim copying of material from the Internet, including tables
and graphics.
Copying other students notes or reports.
Using paid or unpaid material prepared for the student by
individuals or firms.
B. Penalties for plagiarism ranges from failure in the TMA to expulsion from the
Declaration: I hereby declare that the submitted TMA is my own work and I have not
copied any other persons work or plagiarized in any other form as specified above.

Student Signature

Tutors Feedback

Tutor Name:

Tutor Signature:

Date returned: