Micro Economics | Economics Related to Building Industry

Micro Economics Related to Architecture and Engineering

The study of Economics can be broadly classified into two categories:

  1. Micro Economics
  2. Macro Economics

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:

  1. Budget Constraints
  2. Choice
  3. Demand and Supply
  4. Uncertainties
  5. Equilibrium
  6. Technical constraints
  7. Profit maximization
  8. Cost minimization
  9. Monopoly
  10. Oligopoly
  11. Production

Budget constraints

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).

Choice

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.

Read moreMicro Economics | Economics Related to Building Industry

Macro Economics | Economics Related to Building Industry

Study of Macro Economics

Study of Economics can be divided into two parts:

  1. Micro Economics
  2. Macro Economics

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:

  1. Demand and supply
  2. Inflation
  3. Interest rate
  4. Employment
  5. Savings and Investments
  6. Monetary Policy
  7. Fiscal Policy

Demand and Supply

At national level, this depends on the government policies. How different building activities and infrastructure are planned and budgeted. Taxation polices, direct and indirect tax, allocation of funds for housing for the weaker sections in Five Year plans.

Inflation

This aspect depends on how effectively the government can control inflation by exercising control over general price rise and building materials, effective tax collection both at central and state level, maintaining equilibrium in demand and supply, earning foreign exchange. The increase in oil prices invariably increase the cost of living in all walks of life including building industry.

Read moreMacro Economics | Economics Related to Building Industry