Business Economics

You should answer the question in report form with introduction, main body and conclusion.
“The British housing market has “deep, deep” problems, according to the Governor of the Bank of England.
In an interview with Sky’s Murnaghan show, Mark Carney warned that rising house prices represented the biggest current risk to the economy.
He added that the number of large mortgages being approved to house buyers was on the rise and that the UK was in need of new house building.
Mr Carney said: “The issue around the housing market in the UK … is there are not sufficient (numbers of) houses (being) built.”

Question

One of the biggest issues of the UK economy if the constant changes in the housing market. Using the above article passage and any other you may research, write a report analysing what are, the main reasons for those changes. Is the microeconomic or the macroeconomic environment the one that affects prices most? Are the property market challenges linked more to supply or demand?, or maybe we have to consider macroeconomic issues like the exchanges rates, growth and unemployment?
You should include both sides of economics (macro and micro), and elaborate on the most relevant theories.

Learning outcomes to be examined in this assessment:-
a) Identify the nature of resource cost structure and the practical significance of different costs;
b) Explain the factors influencing optimum size and the significance of demand and supply relationships;
c) Demonstrate an understanding of the relevance and limitations of economic theory to management decisions.

Constructive critical analysis, introduction, and conclusion:-
Demonstration of a clear understanding of the issues. Use of academic models. Clear focussed understanding of a topic.
Critical analysis is an important test of the student’s ability to evaluate business economics concepts.
Introductions and conclusions should briefly address the issues to be discussed and discussed respectively

Content, style, relevance, originality:-
Content will reflect the students’ ability to understand and to analyse business economics as taught.
Answers to be based on an interpretation of class hand-outs and evidence of background reading. That is, there should be clear demonstration of focused rigorous research from recognised authoritative sources.
should answer the question in report form with introduction, main body and conclusion.
“The British housing market has “deep, deep” problems, according to the Governor of the Bank of England.
In an interview with Sky’s Murnaghan show, Mark Carney warned that rising house prices represented the biggest current risk to the economy.
He added that the number of large mortgages being approved to house buyers was on the rise and that the UK was in need of new house building.
Mr Carney said: “The issue around the housing market in the UK … is there are not sufficient (numbers of) houses (being) built.”

Question

One of the biggest issues of the UK economy if the constant changes in the housing market. Using the above article passage and any other you may research, write a report analysing what are, the main reasons for those changes. Is the microeconomic or the macroeconomic environment the one that affects prices most? Are the property market challenges linked more to supply or demand?, or maybe we have to consider macroeconomic issues like the exchanges rates, growth and unemployment?
You should include both sides of economics (macro and micro), and elaborate on the most relevant theories.

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