ABDULMALIK IBRAHIM SAULAWA

U19BD1046
BLDG 108: PRINCIPLE OF ECONOMICS FOR BUILDERS

ASSIGNMENT
QUESTION:
1. In one page summarize the principle of economics.
2. In one page summarize the role of economics in
building.
PRINCIPLE OF ECONOMICS
ECONOMICS: can be defined as the social science that studies how people
interact with value; in particular the production, distribution, and consumption
of good and services. Economics can be relative to wealth, welfare, scarcity
and human or society.
The study of economics can be categorized into microeconomics and
macroeconomics.
● MICROECONOMICS: is the study of economics at the individual or business
level; how individual people or businesses behave given scarcity and
government intervention. Microeconomics includes concepts such as demand
and supply, price elasticity, quantity demanded and quantity supplied.
● MACROECONOMICS: is the study of performance and structure of the whole
economy rather than individual markets. Macroeconomics includes concepts
such as inflation, international trade, unemployment, and national
consumption and production.
Some of the principle of economics are:
1. People face trade-offs
2. The cost of something is what you give up to get it
3. People respond to incentives
4. Markets are usually a good way to organize economic activity
5. Government can sometimes improve market outcomes
6. A country’s standard of living depends on its ability to produce goods
and services

DEMAND AND SUPPLY

DEMAND: is the quantity of goods that consumers are willing and able to
purchase at various prices during a given period of time. How much (quantity)
of a product is desired by buyers.
SUPPLY: is the amount of a resources that firm, producers, laborer’s,
producers of financial assets are willing and able to provide to market place or
to an individual. How much the market can offer.
ROLE OF ECONOMICS IN BUILDING

The role of economics in building aims to improve the efficiency of

an industry which contributes over half of the country. The industry
is a key player in economic growth and development. Construction is
an important academic field. Building economics is concerned with
production and consumption and services and the analysis of
commercial activities. The focus is on economic and financial
practices required for high performing building assets, contract
procurement strategies, cash flow analysis, return on investment for
retrofitting, and economic appraisals of existing or new building
assets. In Nigeria, the construction industry contributes an average
over 3% to the annual gross domestic’s product and an average of
about one-third of the total fixed capital investment. The
construction industry plays an important role in the economy, and
the activities of the industry are also vital to the achievement of
socio-economic development goals of providing shelter,
infrastructure and employment. The construction industry is focused
on the construction, demolition, renovation, maintenance or repair
of building and infrastructure. It covers a wide range of services,
from planning and surveying to structural to finishing services such
as painting and decorating.
REFERENCE

https//www.sydney.edu.au>desc
https//www.civilprojectsonline.com
https//en.m.wikiversity.org>wiki