Economics and Finance in Construction are a key part of the construction industry and it’s basically focused on the scarce sources we all have. Everyone needs to get their finances right without doubt or else anyone can easily come to an end where there is no more help or solutions with financial matters. To make sure that the economy stays safe and secure economists argue that people must make careful choices and when it comes to construction the matter to be taken into concern is the, choices we make about investments and how to deal with them because one of the main things for construction is investments and without any there would be no buildings or construction work unless someone has the money to spend other than the bank’s lending money.
Most people have endless wants and always want more and more even though the world is restricted with scarce resources which are called factors of production. Examples of these are land, capital, enterprise and labour. As I mentioned to solve this problem economists argue that people must make careful choices and that people must make sure they are staying within the limits they are given or that are visible.
When relating economy with demand, construction is highly dependent in these changes as whenever there is a change in any matter regarding construction this highly affects the construction industry. Examples like that are demand which will increase if there is less houses and likewise it will influence the construction work if demand gets less due to high costs or weather too much buildings/houses.
When this is related to economics and finance there are four basic economic principles that underpin construction project and what it means by ‘underpin’ is that which support it and justify what strengthens it. These are supply, demand, markets and types of businesses which involve with...