Microeconomics Assignment: The Relevance of Government Policy to the Built Environment

The Learner is required to demonstrate micro and macroeconomic awareness of the Irish property market and construction sector.

Primary and Secondary sources should be used and referenced appropriately.

Part A: Microeconomics (20 marks)

‘Housing for All’ is the Government’s policy to boost the supply of housing to 2030, and add to
availability, sustainability, and affordability of various forms of housing. Four ‘pathways’ have been set
out by the Government to achieve the outcomes of this plan.

(i) (a) Explain the term ‘Market Failure’.

b) Discuss the rationale for the Housing strategy, as an illustration/description of
the market failure in the Irish housing market. (7 marks)

(ii) Select one of the Pathways set out in ‘Housing for All’ and discuss the economic
challenges relevant to the pathway you have chosen. Diagrams may be used to aid your answer.
(10 marks)

(iii) Identify a market structure which in your opinion most represents the competitive environment
Property Service providers operate in. Briefly outline one reason for your choice.
(3 marks)

Part B: Macroeconomics (20 marks)

“All firms in the industry and in the supply chain responsible for delivering construction and
infrastructure projects, need to pay attention to environmental, sustainable, and circular economy
imperatives, given Ireland’s target to reduce greenhouse gas emissions by 51% by 2030. ”
CIF Budget Submission 2023

(i) Considering the statement above, discuss the challenges faced by the Construction Sector in Ireland.
(10 marks)

(ii) “Monetary Policy today is facing a new challenge” Christine Lagarde, President ECB

(a) Define the term ‘monetary policy’.

(b) Discuss how central bank rules & actions impact on the construction industry. (10 marks)