Civil Engineering Reference
In-Depth Information
Figure 1.2
Increasing output and the production possibility curve
In this diagram we show two scenarios: (a) improved productivity shifts the entire
production possibility curve outwards over time; (b) output can be achieved more
efficiently by moving to a position of full potential on the actual production possibility
curve.
A
Buildings
1998 2008
In modern society, economics is involved in all activities leading to the production
of goods and services. Consequently a range of specialisms have evolved out of
mainstream economics, such as transport economics, health economics, business
economics, financial economics, agricultural economics, labour economics,
international economics and, even, ecological economics. Hence it is not particularly
surprising that many students in the twenty-first century are expected to read
something called construction economics as part of their degree course. What
is surprising, however, is that other vocationally oriented degrees do not have a
similarly developed economics specialism. For example, students reading for degrees
in catering, sports and leisure, publishing, retailing or computing do not benefit
from a range of specialised literature in economics.
The reasons usually stated for construction warranting its own specialised
economics is accounted for by the sheer size of the industry, its profound
contribution to a nation's standard of living and its products' unique characteristics.
Put very simply, the industry has five distinct qualities.
•
The physical nature of the product is large, heavy and expensive.
•
The construction industry is dominated by a large number of relatively small
firms, spread over a vast geographical area.
•
Demand for activity within the industry is directly determined by the general
state of the economy as a whole.
