Economics
ECON 310
06 June 2014
Project 1: Construction and Microeconomics With a college degree in the study of Construction Management, an understanding of how the construction industry impacts the economics of a country and or the world, is essential knowledge for practitioners within this industry. When a construction project is in operation the easiest for all to see at the work site is the amount of people participating in the development. Seldom does anyone take the time to understand the total effects that a construction project has on the immediate lives of those participating in the project. Nor, do they consider the benefits that come from interacting with the project and the grander effects that the project has on the other institutions that may not necessarily have direct interaction with it but either positively or negatively are stimulated by its existence. To start our look into the effects of construction projects on the economic growth the economy is split into two structures that are identified by microeconomics and macroeconomics.
“Microeconomics includes those concepts that deal with smaller components of the economy. Individual demand and supply of goods and services, the price elasticity (sensitivity) of demand for goods and services, production, cost functions, and profit maximization in various industries, income inequality and income distribution, and the effect of protectionism (tariffs, quotas, and other trade restrictions) on international trade are topics generally included in microeconomics” (Bouman, n.d.). All this basically means that microeconomics is concerned about the individual parts of the economy rather than all the entities that make up the economy.
In an example of how construction can effect positively the economy with in microeconomics we see what is taking place in South Florida. Due to the jobs created from the construction projects the unemployment rate is slowed down to a crawl in this part of South Florida. The
06 June 2014
Project 1: Construction and Microeconomics With a college degree in the study of Construction Management, an understanding of how the construction industry impacts the economics of a country and or the world, is essential knowledge for practitioners within this industry. When a construction project is in operation the easiest for all to see at the work site is the amount of people participating in the development. Seldom does anyone take the time to understand the total effects that a construction project has on the immediate lives of those participating in the project. Nor, do they consider the benefits that come from interacting with the project and the grander effects that the project has on the other institutions that may not necessarily have direct interaction with it but either positively or negatively are stimulated by its existence. To start our look into the effects of construction projects on the economic growth the economy is split into two structures that are identified by microeconomics and macroeconomics.
“Microeconomics includes those concepts that deal with smaller components of the economy. Individual demand and supply of goods and services, the price elasticity (sensitivity) of demand for goods and services, production, cost functions, and profit maximization in various industries, income inequality and income distribution, and the effect of protectionism (tariffs, quotas, and other trade restrictions) on international trade are topics generally included in microeconomics” (Bouman, n.d.). All this basically means that microeconomics is concerned about the individual parts of the economy rather than all the entities that make up the economy.
In an example of how construction can effect positively the economy with in microeconomics we see what is taking place in South Florida. Due to the jobs created from the construction projects the unemployment rate is slowed down to a crawl in this part of South Florida. The
References: Bouman, J. (n.d.). Principles of Microeconomics. Retrieved June 13, 2014, from Inflate Your Mind: http://www.inflateyourmind.com/pdfs/microeconomics.pdf Cordle, I. P. (2014, March 3). Construction helps lead new job creation in South Florida, as the state outpaces the nation 's unemployment recovery. Miami Herald Business. Retrieved June 10, 2014, from http://www.miamiherald.com/2014/03/17/4000560/construction-helps-lead-new-job.html Markstein, B. P. (2014, January 15). Economic Foresight for 2014-2015. Retrieved June 10, 2014, from Design Intelligence: http://www.di.net/articles/economic-foresight-for-2014-2015/