Glossary - Construction Economics: A New Approach - page 314

social costs The full cost that society bears when a resource-using action occurs. For
example, the social cost of driving a car is equal to all the private costs plus any
additional cost that society bears, such as air pollution and traffic congestion.
(Some authors use this term to simply refer to external costs.)
social price The total price when all costs and benefits have been considered - that
is, when private costs and benefits are added to the external costs and benefits.
stable equilibrium A situation in which if there is a shock that disturbs the existing
relationship between the forces of supply and demand, there are self-corrective
forces that automatically cause the disequilibrium to be remedied.
stagflation A term coined in the 1970s to represent the combined problem of high
unemployment and rising prices.
strategic partnering An agreement between a contractor and client to work together
on a series of construction projects in order to promote continuous improvement.
Contrast with project partnering.
structural rigidities These are obstacles within markets that prevent a swift
response to changing forces of supply and demand. They are more prevalent in
some markets than others. One example of a structural rigidity is the way that
commercial leases affect the dynamics of the property market.
subnormal profits A rate of return that is below the rates being earned elsewhere.
More commonly these would be referred to as a loss.
substitute goods Two goods are considered substitutes if one can be used in place
of the other. A change in the price of one, therefore, causes a shift in demand for
the other. For example, if the price of butter goes up, the demand for margarine
will rise; if the price of butter goes down, the demand for margarine will
decrease.
suicide bid A term coined by journalists to describe the desperate measures that
a construction firm may resort to during a recession to win business. In other
words, the practice of submitting a tender that contains no profit element.
supernormal profits A rate of return that is greater than the rates being earned
elsewhere. Also known as abnormal profits.
supply constraints These occur when it is either not possible to increase output - or,
it is only possible at high costs.
supply curve The graphical representation of the supply schedule; a line showing the
supply schedule, which slopes upwards (has a positive slope).
supply schedule A set of numbers showing prices and the quantity supplied at
various prices for a specified period of time. In effect, therefore, the schedule
shows the rate of planned production at each price.
supply-side economics Government policies designed to create incentives for firms
and individuals to increase productivity. Supply-side economics is concerned
with the level of aggregate supply.
sustainable construction An international agenda set for the construction industry
designed to deliver products that perform better over their full life cycle and
work in a more economically efficient and socially responsible way. For other
definitions, see Table 15.4 (page 279).