What is Economics? Some Initial Concepts

Abstract

The aim of this chapter is to provide an overview of the principles and techniques that underpin this book. Initially the discussion focuses on economics as a distinct discipline. It stresses the fact that economics, contrary to popular opinion, is not just a subject intended to explain how businesses or individuals can make a profit or accumulate money. Rather it is concerned with the broader issue of finding the best use for the scarce resources at society’s disposal. Like all disciplines, economics is guided by a set of principles. Thus the initial aim is to provide an insight into what makes economists ‘tick’ and the issues that economists consider important. This overview will provide a backdrop for the remainder of the chapter, which focuses specifically on the role economics can play in providing an effective framework within which the construction industry can be analysed. Thus we shall consider what makes ‘construction economics’ different from ‘environmental economics’, or indeed ‘economics’ in general. With a view to encouraging readers to find their own evidence to illustrate the economics they use, this chapter also identifies some of the more important sources of statistical information.