SOUTH AFRICAN QUALIFICATIONS AUTHORITY
UNIT STANDARD: 32
Demonstrate an understanding of micro-economic principles
SAQA US ID
SGB NAME
SGB for Quantity Surveying
NSB
NSB 12: Physical Planning and Construction
NQF LEVEL:
4
CREDITS
15
FIELD
Physical Planning and Construction
SUB-FIELD
Physical Planning, Design and Management
UNIT STANDARD TYPE
Regular
ISSUE DATE
REVIEW DATE
PURPOSE OF THE UNIT STANDARD
The qualifying learner is capable of:
Demonstrating an understanding of basic micro-economic principles
Successful completion of this unit standard will contribute towards the full development of a
professional community of Quantity Surveyors. The skills, knowledge and understanding to be
demonstrated by qualifying learners are essential for economic transformation and social upliftment
within environments related to construction and property development
LEARNING ASSUMED TO BE IN PLACE
NQF Level 3 or equivalent
SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA
Specific outcome 1
Assessment criteria 1
Understand the principles of demand, supply
and equilibrium
1.1
1.2
1.3
1.4
The concept of consumer demand is explained
The concept of supply is explained
The concept of a market is explained
The concepts of demand and supply elasticities
are explained
Unit Stdd: 32
Demonstrate an understanding of micro-economic principles as they relate to the Built Environment
1
Specific outcome 2
Assessment criteria 2
Understand the principles of consumer
behaviour
2.1 The concept of consumer preferences is
explained
2.2 The principles of budget constraint are
understood
2.3 The concept of consumer optimisation is
explained
2.4 The theory behind the demand curve is explained
Specific outcome 3
Assessment criteria 3
Understand the principles of the production
function and the theory of production cost
3.1 The concepts of factors of production are
explained
3.2 The principles of the production function are
explained
3.3 The concept of constructing a production function
is explained
3.4 The concept of cost is understood
3.5 The concept of the optimal input combination is
understood
3.6 The concepts of long run cost, economies of
scale, and short run cost is demonstrated
3.7 The relationship between long run and short run
costs is understood
Specific outcome 4
Assessment criteria 4
Understand the principles of different market
forms and income distribution
4.1 Different market forms such as perfect
competition, monopoly, and imperfect competition
are understood
4.2 The assumptions underlying the different market
forms are understood
4.3 The behaviour of the firms in the short run and
long run are explained
4.4 The principles of short run and long run
equilibrium under different market forms are
explained
4.5 The concepts of market distribution are
understood
4.6 The markets for labour, capital and land are
analysed
Unit Stdd: 32
Demonstrate an understanding of micro-economic principles as they relate to the Built Environment
2
ACCREDITATION PROCESS, INCLUDING MODERATION OPTIONS
Both normative and summative assessment methods incorporating evaluation techniques to
adequately and appropriately achieve the objectives of this Unit Standard, are applied
Summative assessments include integrated assessment to evaluate the learner’s ability to combine
various knowledge and skills competencies in such a way that
 respective specific outcomes are adequately met
 learning achievements relative to the specific outcomes of this Unit Standard are competently
demonstrated
 embedded / underlying knowledge is applied insofar as it relates to specific outcomes
 domain knowledge is displayed
Moderation options include transparent, affordable
 peer review (academic – interdisciplinary – work-place practitioners )
 assessment of competence by external organisations and in particular the South African Council
for the Quantity Surveying Profession, established in terms of the Quantity Surveying Profession
Act No 49 of 2000
 compliance with the framework and regulations established by the Higher Education Quality
Committee of the CHE, which includes the appointment of accredited / registered external
examiners / assessors who are external to the provider
 assessment of competence by professional institutions / inter-disciplinary fraternal associations
RANGE STATEMENTS
The scope of this Unit Standard is related to the performance of work typically undertaken by quantity
surveyors and which newly-qualified persons are expected to demonstrate in their places of
employment, including the ability to
a) understand demand and supply analysis
b) interpret consumer behaviour
c) explain the production function
d) understand different market forms, equilibrium and income distribution
Unit Stdd: 32
Demonstrate an understanding of micro-economic principles as they relate to the Built Environment
3
ESSENTIAL EMBEDDED KNOWLEDGE
Refer to Specific Outcomes and related Assessment Criteria
The specific outcomes of this Unit Standard relate to fields of economic activity other than quantity
surveying, thereby providing career-path options leading to a variety of employment opportunities, for
example in
 banking
 capital allowances and tax advice
 construction management
 contract surveying
 education and training
 environmental management
 equipping / refurbishment / management e g commercial / retail enterprises and hospitality /
tourism industry
 facilities management
 housing
 information technology
 mining
 project management
 property brokerage
 property development
 property valuation
 real estate management
 shipbuilding and maintenance
 specification writing
 urban and regional planning
NOTES / SUPPLEMENTARY INFORMATION
Refer to foregoing range statements. Qualifying learners are expected to demonstrate their skills (in
terms of Assessment Criteria) within time limits which are acceptable to Assessors / Moderators,
relative to the scope of task / assignment production and overall quality of performance
Unit Stdd: 32
Demonstrate an understanding of micro-economic principles as they relate to the Built Environment
4