Title: Business Economics

Business Studies Level: Level 4

Format: Individual Report
Report Word Limit: 1,500 words each (+ or 10%)
Deadline : 5.00pm, 03 April 2015
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.

The limit is not a guide, it is an instruction.

Do not stray into tangential material.
Always ask yourself is what Ive written relevant to the
question set?
Copy and Paste.
Please try to refrain from doing this.

 Font size: Please use font size of approx.. TNR 12, Arial
12 size.
Double space.
Ensure you reference your citations using the Harvard
method.
Constructive critical analysis, introduction, conclusion:
demonstration of a clear understanding of the issues; use
of academic models; clear focused understanding of a
topic; critical analysis is an important test of the students
ability to evaluate business economics concepts.
Introductions and conclusions should briefly address the
issues to be discussed and discussed respectively.

Assignment Task: Individual Report.

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 analyzing 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.