INDEXIndex 2ACTIVITY 1 P1 3ACTIVITY 2 M1 5BIBLIOGRAPHY 6INTRODUCTIONIn task one 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. I will discuss inflation and interest later. I will first give a brief introduction on what the economy is, then in detail what supply and demand are and what they influence it. I will explain markets and inflation later. In the second task I will explain the problems with economics and finance. And the solutions I researched and different aspects of the economic principle. TASK 1 P1 Construction economics and finance are a fundamental part of the construction industry and fundamentally focus on the scarce resources we all have. Everyone needs to sort out their finances without a doubt, otherwise anyone can easily reach the end without any more help or solutions for financial issues. To ensure that the economy remains safe and secure, economists argue that people must make careful choices and when it comes to construction the issue to be taken into consideration is the choices we make about investments and how to manage them because one of the main things for construction are investments and without them there would be no buildings or construction work unless someone has money to spend in addition to loans from the bank. When relating the economy to demand, construction is highly dependent on these changes as whenever there is a change in any issue regarding construction, it greatly affects the construction industry. Such examples are d... half the paper... and get all your finances in order. When a labor shortage occurs, construction development is slowed down. BIBLIOGRAPHY Topliss, S., & Hurst, M. (2010). Construction and built environment. Edinburgh: Pearson Education Limited.Summary: I have mentioned the different types of markets 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 and how they affect the economy and the construction industry. In assignment two I mentioned the different problems related to the economy which include shortages and shortages. I also mentioned the different ways of thinking about human nature and what the factors are. Finally I talked about the different solutions and how this affected the construction.