CONTENTS 2TASK 1 P1 3TASK 2 M1 5BIBLIOGRAPHY 6INTRODUCTIONIn the first task, I have to explain the basic economic principles that underlie construction projects. I will mention the different markets, such as labor, raw materials, housing and finance. I will also explain the different impacts that will occur in the construction sector. Later, I will discuss inflation and interest. I will first give a brief introduction on what economics is, then go into detail about what supply and demand are and what affects them. Later, I will explain markets and inflation. In the second task, I will explain the problems related to economics and finance. And the solutions I researched and different aspects of economic principle.TASK 1 P1Construction economics and finance is a key part of the construction industry and it basically focuses on the rare sources that we all have . Everyone undoubtedly needs to get their finances back on track, otherwise everyone can easily find themselves without help or solutions in financial matters. To keep the economy safe, economists argue that people need to make careful choices and that when it comes to construction, the issue to consider is what choices we make about investments and how to make them. manage, because one of the main things for construction are investments and without any buildings there would be no buildings or construction work unless someone has money to spend other than the money lent by the bank. When connecting the economy with demand, construction is highly dependent on these changes, as whenever there is a change in any matter regarding construction greatly affects the construction industry. Examples like that are in the middle of paper......and improve all your finances. When labor shortages occur, construction development slows.BIBLIOGRAPHYTopliss, S. and Hurst, M. (2010). Construction and the built environment. Edinburgh: Pearson Education Limited.Summary: I have mentioned the different types of market and the two main factors which are supply and demand, I have written in detail what they are and how they affect construction. I also mentioned interest and inflation rates and how they affect the economy and the construction industry. In the second task, I mentioned the different problems related to the economy which include shortages and scarcity. I also mentioned the different conceptions of human nature and what the factors are. Finally, I talked about the different solutions and how they affected construction..