Archive for category Economics
Micro Economics Related to Architecture and Engineering
The study of Economics can be broadly classified into two categories:
In this article, we are going to discuss various terms related to Micro Economics. Check out the brief on “Macro Economics and Micro Economics“.
Here is the list of terms we are about to discuss in this article:
- Budget Constraints
- Demand and Supply
- Technical constraints
- Profit maximization
- Cost minimization
For individuals, the budget for acquiring property depends in the earning capacity of the family per annum, the ability to raise loan, savings, repaying capacity (in 5year/ 10year/ 15year loan periods).
Depends on the budgetary capability, savings, willingness to invest, optimum level to spend, location of the property etc, choice of the specifications, reputation of the builders, quality of construction, timely completion of projects, proximity to public amenities like transport, railway station, airport etc.
The study of economics is broadly divided into two categories:
In our previous article “Introduction to Building Economics as related to Architecture“, we discussed certain important terms relating to Building Economics. This article is the continuation of the study of Micro Economics and Macro Economics. This article will give you a brief idea of Macro Economics and Micro Economics.
It is a small part of whole economics which deals with individuals, their needs, their behaviour, individual firms and its activities. This deals with studies like incomes, capital spending on building, individuals who are engaged in various products for building construction.
Micro-economics is also called Price Theory.
Importance of Micro-economics
It analyses how millions of consumers and producers in an economy take decisions about products and services offered. It also deals with how buildings and services are distributed belonging to different economic status.
- It cannot give an idea of the function of the economy as a whole.
- It assumes full employment which is a rare phenomenon in developing countries or even developed countries which is quite unrealistic.
Public Sector and Private Sector
Public Sector is controlled by government to manufacture Power, Steel, Aluminium, copper, mining etc to provide employment to common man and control the country’s economy.
The Public Sector Unit tends to overstaff resulting in the increase in cost production.
Due to the lack of modernisation, they do not use their surpluses in the form of Capital.
PSU provides employment to the millions of people around the country.
They monopolise the market.
The PSUs could not survive due to so many controls and overruns.
- Navratnas in PSU
- Petrochemical Corp. (IPCL)
- BP Corporation. Ltd
- Mahanagar Tele. Nigam Ltd (MTNL)