Precios de la Oferta y Descuentos

Learning hours: 60

NQF level 4: BTEC Higher National – H2

Description of unit

This unit provides an introduction to the ways in which the economic environment affects the construction industry.

The unit has been designed to enable learners studying the BTEC Higher National in

Construction to investigate, analyse and evaluate the implications of various economic theories on the construction industry and demonstrate knowledge and understanding of economics.

Summary of learning outcomes

To achieve this unit a learner must:

1 Demonstrate an understanding of the methods of allocation of scarce resources and the determination of price

2 Demonstrate an understanding of the factors affecting the economics of an organisation 3 Evaluate the size and economic significance of the work carried out by different sectors

of the construction industry

4 Evaluate government economic activity and how it affects the construction industry.

Content

1 Allocation of scarce resources and determination of price

Factors that affect the allocation of scarce resources: comparison of the free market and planned economies, operation of the price mechanism. Analysis of supply and demand, effects of elasticity, taxes and subsidies on the equilibrium price. Operation of cost benefit analysis

2 Economics of an organisation

Factors that affect the economics of an organisation: perfect, imperfect and monopolistic competition. Scale of production, internal and external economies of scale, increasing and decreasing returns to scale. Sources of finance for the construction industry

3 Economic significance of the work carried out by sectors of the construction industry Size and economic significance of the construction industry: different sectors of operation, size and number of organisations within each sector, volume of work carried out by the different sectors. Client base of the construction industry

4 Government economic activity

Affects of government activity: fiscal policy, monetary policy. International trade, balance of payments and exchange rates, private and public expenditure

Outcomes and assessment criteria

Outcomes Assessment criteria for pass

To achieve each outcome a learner must demonstrate the ability to:

1 Demonstrate an

understanding of the methods of allocation of scarce resources and the determination of price

· analyse the fundamental differences between the theoretical operation of free market and planned economies

· explain, with the aid of an example, the operation of the price mechanism

· draw examples of supply and demand curves from given data, some of which include taxes and subsidies and determine equilibrium points

· draw conclusions from the results obtained by carrying out a cost benefit analysis utilising information given

2 Demonstrate an

understanding of the factors affecting the economics of an organisation

· explain the differences between perfect, imperfect and monopolistic competition

· discuss how economies of scale can affect probability within the construction industry

· determine the levels of output from given data, illustrating different volumes or mixes of inputs within the same business and explain whether these are increasing or decreasing returns of scale

· select and describe suitable sources of finance for given projects and business types likely to be found within the construction industry

3 Evaluate the size and

economic significance of the work carried out by

different sectors of the construction industry

· analyse information derived from charts produced, using recent data concerning the different sectors, size and number of organisations and volumes of work completed, within the construction industry

· propose possible economic reasons for results shown on the charts produced

Guidance

Delivery

This unit can be studied in either the first or the second year of the programme.

In general, learners should produce work individually although group discussion should be encouraged. Case studies should also be used where appropriate.

Use should also be made of past, current and future economic events to stimulate discussion and aid understanding of concepts under discussion. To encourage this, learners should endeavour to increase their knowledge of the subject by careful reading of relevant material, not only from textbooks but also from good quality newspapers and professional journals.

Assessment

It is recommended that evidence for learning outcomes is achieved through well-planned course work, assignments and projects. Assessment may be formative and summative and both may feature as part of the process. Although assessments must be focused on the individual achievement of each learner, group work and role-play activities may contribute to the assessment. Integrative assignments and project work will help to link this unit with other related units.

Where available, evidence from the workplace can also be incorporated to enhance the learning outcomes, provided that this evidence is appropriate and authenticated as the learner’s own work. The volume of evidence required for each assessment should take into account the overall number of assessments being contemplated within this unit and the design of the overall teaching programme.

In designing the assessment instruments, opportunities may also be included to generate evidence to meet the CIC Common Learning Outcomes and higher level skills appropriate to the outcomes of this unit, see Annex D and Annex F.

Links

This unit is generally free standing, but may be linked with some outcomes within the core unit, Unit 4: Management Principles and Application. There will be ample opportunity for CIC Common Learning Outcomes and higher level skills to be developed and assessed within this unit.

The content of this unit has been designed and mapped against the 1998 CISC Occupational Standards and current NVQs at level 4. The mapping links indicate that the achievement of the

Resources

Learners should have access to a wide range of library resources, including textbooks and journals, government fiscal and monetary statistics, with specific reference to analysis of construction activities, and industry wide publications.

Support materials Textbooks

· Hillebrandt, P — Economic Theory and the Construction Industry 3rd Edition — (Palgrave, 2000)

· Shutt R, — Economics for the Construction Industry 3rd Edition — (Longman Scientific and Technical, 1995)

Other publications

· Quality newspaper and magazine articles on economic issues

· Technical and professional journals on economic issues

· TSO — Housing and Construction Statistics

· TSO — Annual Abstract of Statistics

· TSO — UK National Accounts