Department of Architecture & Civil Engineering, Unit Catalogue 2008/09 |
AR50122 Economics in construction |
| Credits: 6 |
| Level: Masters |
| Modular: no specific semester |
| Assessment: CW 60%, EX 40% |
| Requisites: |
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Aims: To explore the relevance of economics to construction in respect to macro and micro economics.
Learning Outcomes: After taking this unit the student should be able to: * Compare and contrast the working of a planned economy with those of a market economy. * Relate the ways in which growth occurs to various types of economy. * Discuss the main microeconomic factors which affect construction. * Outline the ways in which government policy affects demand for construction. * Understand and compare the major difference between the economics of a contracting firm and those of a manufacturing firm. Skills: Written communication, problem solving, working independently. Content: ECONOMIC SYSTEMS: Prevailing systems, changes in economic practice throughout the world. MEASURES OF ACTIVITY: Economic data available nationally and internationally, GDP, GNP, PPP. SCHOOLS OF THOUGHT IN ECONOMICS: Role of money. Classical school, Keynesianism, monetarism. GROWTH, CYCLES AND UNEMPLOYMENT: Reasons for cycles, links with unemployment. SAVING, INVESTMENT, MULTIPLIER AND ACCELERATOR: Performance factors in the economy. Using construction industry to regulate overall economic performance. INFLATION: Relationship between inflation and macroeconomics. remedies for inflation: price and wage control, increased tax, increased competition, reduced government spending. Measuring inflation. Control of inflation. INTERNATIONAL TRADE: Balance of payments, exchange rates. DEMAND FOR CONSTRUCTION: Goods and services. Difference between demand and need. Influencing factors. CONSTRUCTION INDUSTRY OUTPUT: Output by end product, client, agencies, size, duration, geographical distribution, construction techniques used. STRUCTURE AND SUBCONTRACTING: Structure which results from construction process. INPUTS AND PRODUCTIVITY: Labour, management, materials, plant and equipment, finance. GOVERNMENT INTERVENTION AND RESOURCE PLANNING: Within the economy and within the industry. ECONOMIES IN TRANSITION: Iso product curves, aid to developing countries, economies in transition: FSU, Vietnam, China. TYPES OF FIRM, TYPES OF BUSINESS: Housing, property development, minerals, materials, international construction. DEMAND AND SUPPLY: Demand and supply curves. COSTS OF THE FIRM AND MARKET SUPPLY CURVES: Cost structures and cost curves in manufacturing and construction industries. TYPES OF MARKET SITUATION AND EQUILIBRIUM: Equilibrium and market situations (from perfect competition to monopoly). INPUTS TO THE CONSTRUCTION FIRM: Materials, plant and equipment, labour. CHOICE OF SPECIFIC MARKETS: Construction markets. Diversification. ECONOMIC DECISIONS: Market economies. Planned economies. |