This document contains a tutorial on building economics for a group project. It discusses key concepts in building economics like the application of economic techniques to construction projects. It also describes four characteristics that separate the construction industry from others like its temporary and site-based organization. The document outlines four categories of economic resources - labor, capital, land, and enterprise. It lists five important factors of the construction industry's impact on a country's economy. Finally, it provides two examples of how government policies can influence the supply and demand in the construction industry, such as sales tax policies and export promotion industrial policies.

1. Building Economics
Tutorial 1
Group members:
Adam wong (0322520)
Michelle Tung Man Kaye (0324175)
Alan Chung JiaZen (0321487)
Chin Qi Yu (0324094)
Calvin Wong Ping Ket (0322481)
Koh Ee Sing
Muhammad Fareez (0322961)

2. Question 1:
What is Building Economic?
Building economics is the study of the application of the technique and
expertise of economics towards construction projects. This study
concerns the use of the available resources to increase the rate of growth
of the construction work in the most efficient manner, building a suitable
and appropriate shelter for man.

3. Question 2:
Describe and explain the four (4) characteristics which separate the
construction industry from other industries.
1. Organisation of the construction process
❖ Temporary multi-organisation
❖ Site Production, fixed position
manufacturing
2. Structure of the industry
❖ One of a kind nature of projects, made to
specific customers, an unique product
❖ Each project often represents a large
proportion of a single contractor work order
in any year causing substantial discontinuity
to production function
3. Method of price determination
❖ Product rooted in place
4. Physical nature of the product
❖ Final product is often large and expensive
and may be required over a wide
geographical area.

4. Question 3:
Describe and explain the four (4) categories of these resources.
Labour
- Households supply their labour to firms
that demand labour and firms pay
workers for their time and skills. The
return to the resource owner is wages.
Capital
- This Refers to any man made resources,
including building, plant , machinery,
equipment, infrastructure and tools. The
return to the owners of capital is called
profit or interest.
Land
- This refers not only to actual land but
also the space and the mineral
contained in the earth crust and all
natural resources. The return to the
source owner is rent;
Enterprise
- Entrepreneurs who have the special
ability to combine the other three types
of resources with the return of profits.

5. Question 4:
List down five (5) importance factor of construction industry in the country’s
economy
- Scale of the construction industry
- Employment
- Investment
- Government
- International

6. Question 5:
Provide 2 examples of government policies which influences the supply and
demand of the construction industry.
1. Sales tax and services tax (SST)
- Presently, Malaysia has consumption taxes in the form of sales tax and
service tax, which are imposed on specifically identified classes of goods
and services, respectively. In the present of SST, the supply and demand
of products will decrease as the cost of the products is rising.

7. Question 5:
2. Export promotion industrial policy
- Malaysia has implemented export promotion industrial policies
extensively for more than 40 years. This has assumed the form of the
granting of tax incentives, the establishment of export processing zones
and industrial areas. For example, imported building materials incur
import duties while building materials gets a large rebate on excise
duties.