UNIT-2

32.Law of diminishing marginal utility.

ans- Law of diminishing marginal utility falls in the category of microeconomics.utility is the capacity of
a commodity through which human wants are satisfied. Marginal utility is the level of satisfaction from
the consumption of goods while the diminishing marginal utility is specifically related to the decrease of
satisfaction from the consumption of goods.The marginal utility can either be zero, positive,
negative,diminishing or increasing.In economics, law of diminishing marginal utility states that the
marginal utility of a good or service declines as more of it is consumed by an individual.Marketers use the
law of diminishing marginal utility because they want to keep the marginal utility high for the products
that they sell.

33.a)free good and economic goods

ans-Economic goods
● Demand is higher than supply and availability
● Requires human efforts for production
● Has a money value or price
● Can be regarded as wealth in economics
● They are not gifts of nature e.g. table,chair, stationery

Free goods

● Are available and abundant in nature

● Does not require human efforts to produce
● Has no money value or price
● Cannot be regarded as wealth in economics
● They are gifts of nature e.g sunlight,air ,water

b)labour intensive and capital intensive

ans-Capital intensive and labor intensive refer to types of production methods used in the production
of goods and services.
Capital intensive refers to the production that requires higher capital investment such as financial
resources, sophisticated machinery, more automated machines, the latest equipment, etc.
Labor intensive refers to the production that requires a higher labor input to carry out production
activities in comparison to the amount of capital required.
● Capital intensive refers to the amount of capital invested so as to increase the revenue and
profit whereas labour intensive refers to amount spent on training to labour so as to increase
the efficiency of labour which will ultimately result in the increased production.
● Capital intensive leads to an increase in operating and other maintenance costs whereas the
labour intensive leads to optimum utilization of resources which reduces the production cost.
● To be capital intensive organization requires lots of money whereas to be Labour intensive
organization requires an efficient and motivational workforce.
34.a)Public private projects
ans-Public-private partnerships involve collaboration between a government agency and a private-
sector company that can be used to finance, build, and operate projects, such as public transportation
networks, parks, and convention centers. Financing a project through a public-private partnership
can allow a project to be completed sooner or make it a possibility in the first place. Public-private
partnerships often involve concessions of tax or other operating revenue, protection from liability, or
partial ownership rights over nominally public services and property to private sector, for-profit
entities.
b)Public projects

ans-A public project is any project that is funded by a government, and is meant to be owned or operated
by that government.

c)private projects

ans-The private sector is the part of the economy that is run by individuals and companies for profit and is
not state controlled. Therefore, it encompasses all for-profit businesses that are not owned or operated by
the government.

Types of Investment Models

● Public Investment Model: In this model Government requires revenue for investment that
mainly comes through taxes.

○ As the world is facing the prospect of an extended period of weak economic

growth, by enhancing public-sector investment large pools of savings can be
channelized into productivity.
○ Properly targeted public investment can do much to boost economic
performance, generating aggregate demand quickly, fueling productivity
growth by improving human capital, encouraging technological innovation,
and spurring private-sector investment by increasing returns.
○ Though public investment cannot fix a large demand shortfall overnight, it
can accelerate the recovery and establish more sustainable growth patterns.
● Private Investment Model: For a country to grow and increase its production investment
is required. Presently tax revenue of India is not adequate to meet this demand so
government requires private investment.

○ Private investment can be source from domestic or international market.

○ From abroad private investment comes in the form of FDI or FPI.
○ Private investment can generate more efficiency by creating more
competition, realization of economies of scale and greater flexibility than is
available to the public sector.
● Public-Private Partnership Model: PPP is an arrangement between government and
private sector for the provision of public assets and/or public services. Public-private
partnerships allow large-scale government projects, such as roads, bridges, or hospitals, to
 be completed with private funding.

○ In this type of partnership, investments are undertaken by the private sector

entity, for a specified period of time.
○ These partnerships work well when private sector technology and innovation
combine with public sector incentives to complete work on time and within
budget.
○ As PPP involves full retention of responsibility by the government for
providing the services, it doesn’t amount to privatization.
○ There is a well defined allocation of risk between the private sector and the
public entity.
○ Private entity is chosen on the basis of open competitive bidding and receives
performance linked payments.
○ PPP route can be alternative in developing countries where governments face
various constraints on borrowing money for important projects.
○ It can also give required expertise in planning or executing large projects.

35.Various methods of project financing through PPP.

ans-PPPs in infrastructure are normally financed on project basis (as opposed to corporate financing).
This refers to financing in which lenders look to the cash flows of an investment for repayment, without
recourse to either equity sponsors or the public sector to make up any shortfall.

This arrangement has several advantages:

● reduces/isolates the financial risk of investors;

● more careful project scrutiny, risk analysis leading to change in project structure, reduction in
level of risk and more appropriate allocation of risks between parties.

However, project financing also has many disadvantages which include:

● more complex transactions than corporate or public financing;

● higher transaction costs (the due diligence process conducted by parties results in higher
development costs, which could be up to 5-10 per cent of project value);
● protracted negotiation between parties;
● requirement of close monitoring and regulatory oversight (particularly for the potential
expostulate guarantees).

36.Factors determining technological changes and whether it is primarily capital intensive or

labour intensive

37.Central government policies aimed at promoting real estate and housing

Ans-
1) Real Estate (Regulation and Development) Act, 2016: The Real Estate (Regulation and
Development) Act, 2016 which came into force in March 2016 has laid down a regulatory framework
which will change the way the real estate sector operates in India. It aims to enhance transparency, bring
greater accountability in the realty sector and set disclosure norms to protect the interest of all
stakeholders.
2)100% deduction in profits for affordable housing construction: To promote affordable housing, the
finance minister proposed 100% deduction in profits to an undertaking from a housing project for flats of
up to 30 sq metre in four metro cities and 60 sq metre in other cities. These projects have to be approved
during June 2016 to March 2019. Another condition was that the project should be completed within three
years of grant of approval.
3) Service tax exemption on construction of affordable housing: Exemption of service tax on
construction of affordable houses of up to 60 square metre under any scheme of the Central or state
government including public private participation or PPP schemes will propel construction in affordable
segment across India and encourage greater collaboration between the public and private sector as well as
participation in affordable home construction.
4) Interest subsidy for first-time homebuyers: To stimulate housing demand from first- time home
buyers, the Union Budget 2016-17 also proposed deduction of additional interest of Rs 50,000 per annum
for first-time home buyers for loans of up to Rs 35 lakh sanctioned during the next financial year for
houses with a value not exceeding Rs 50 lakh. This move should positively influence home sales in non-
metros in the long term where residential product prices are not as high as those in metros.

38.Central Government at promoting infrastructure projects

39.Widely used models in PPP projects

ans-Commonly adopted model of PPPs include Build-Operate-Transfer (BOT) ,Build-Own-Operate

(BOO), Build-Operate-Lease-Transfer (BOLT), Design-Build-Operate-Transfer (DBFOT), Lease-
Develop-Operate (LDO), Operate-Maintain-Transfer (OMT), etc.

● These models are different on level of investment, ownership control, risk sharing,
technical collaboration, duration, financing etc.
● BOT: It is conventional PPP model in which private partner is responsible to design,
build, operate (during the contracted period) and transfer back the facility to the public
sector.

○ Private sector partner has to bring the finance for the project and take the
responsibility to construct and maintain it.
○Public sector will allow private sector partner to collect revenue from the
users. The national highway projects contracted out by NHAI under PPP
mode is a major example for the BOT model.
● BOO: In this model ownership of the newly built facility will rest with the private party.

○On mutually agreed terms and conditions public sector partner agrees to
‘purchase’ the goods and services produced by the project.
● BOOT: In this variant of BOT, after the negotiated period of time, project is ransferred to
the government or to the private operator.
○ BOOT model is used for the development of highways and ports.
● BOLT: In this approach, the government gives a concession to a private entity to build a
facility (and possibly design it as well), own the facility, lease the facility to the public
 sector and then at the end of the lease period transfer the ownership of the facility to the
government.
● DBFO: In this model, entire responsibility for the design, construction, finance, and
operation of the project for the period of concession lies with the private party.
● LDO: In this type of investment model either the government or the public sector entity
retains ownership of the newly created infrastructure facility and receives payments in
terms of a lease agreement with the private promoter.

○ It is mostly followed in the development of airport facilities.

40.Benefits & challenges of PPP model
Ans-PPP advantages:
● Ensure the necessary investments into public sector and more effective public resources
management;
● Ensure higher quality and timely provision of public services;
● Mostly investment projects are implemented in due terms and do not impose unforeseen public
sectors extra expenditures;
● A private entity is granted the opportunity to obtain a long-term remuneration;
● Private sector expertise and experience are utilized in PPP projects implementation;
● Appropriate PPP project risks allocation enables to reduce the risk management expenditures;
● In many cases assets designed under PPP agreements could be classified off the public sector
balance sheet.
PPP disadvantages:

● Infrastructure or services delivered could be more expensive;

● PPP project public sector payments obligations postponed for the later periods can negatively
reflect future public sector fiscal indicators;
● PPP service procurement procedure is longer and more costly in comparison with traditional
public procurement;
● PPP project agreements are long-term, complicated and comparatively inflexible because of
impossibility to envisage and evaluate all particular events that could influence the future activity

41.Different sources of capital for business entities

ans-Businesses can raise capital through various sources of funds which are classified into three
categories.
1. Based on Period – The period basis is further divided into three dub-division.
● Long Term Source of Finance – This long term fund is utilized for more than five years. The fund
is arranged through preference and equity shares and debentures etc. and is accumulated from the
capital market.
● Medium Term Source of Finance – These are short term funds that last more than one year but
less than five years. The source includes borrowings from a public deposit, commercial banks,
commercial paper, loans from a financial institute, and lease financing, etc.
● Short Term Source of Finance – These are funds just required for a year. Working Capital Loans
from Commercial bank and trade credit etc. are a few examples of these sources.
2. Based on Ownership – This sources of finance are divided into two categories.
● Owner’s Fund – This fund is financed by the company owners, also known as owner’s capital.
The capital is raised by issuing preference shares, retained earnings, equity shares, etc. These are
for long term capital funds which form a base for owners to obtain their right to control the firm’s
management and operations.
● Burrowed Funds – These are the funds accumulated with the help of borrowings or loans for a
particular period of time. This source of fund is the most common and popular amongst the
businesses. For example, loans from commercial banks and other financial institutions.

3. Based on Generation – This source of income is categorized into two divisions.

● Internal Sources – The owners generated the funds within the organization. The example for this
reference includes selling off assets and retained earnings, etc.
● External Source – The fund is arranged from outside the business. For instance, issuance of
equity shares to public, debentures, commercial banks loan, etc.

UNIT-3
24.Meaning of sociology, why study sociology?

ans-Sociology is the study of social life, social change, and the social causes and consequences of human
behavior. Sociologists investigate the structure of groups, organizations, and societies, and how people
interact within these contexts.
Studying sociology provides a better understanding of the following:

● Reasons for social differences, including differences in social behavior.

● Reasons for the differentials in group opportunities and outcomes.
● The relevance of social hierarchies and social power in everyday life.
● How individuals and groups are shaped by larger social forces.
● The role of social institutions.

● The role of social structure.

25.What are culture and civilization describe respective characteristics with examples
ans- culture is the set of knowledge, experiences and behaviours which is commonly shared by a group of
people. It is something that a person gains through learning.Culture includes art, knowledge, belief,
customs, traditions, morals, festivals, values, attitudes, habits and so on which are inherited by a person as
a member of society. It is everything; an individual achieves as a member of a social group. It can be seen
in the literature, music, dance forms, religious practices, dressing style, food habits, ways of greeting
others, recreation and enjoyment. Different cultures can be found in different places, as it varies from
region to region.

Whereas civilization is a series of actions taken, by which a society or place reaches an advanced stage of
social and cultural development and establishment, where the process of civilization not only brings better
individual self-control but also the transformations of attitudes and values.
Culture exists because it could be embodied in civilization.

Characteristics of Culture

● Culture is learned. It is not biological; we do not inherit it. Much of learning culture is
unconscious. We learn culture from families, peers, institutions, and media. The process of
learning culture is known as enculturation. While all humans have basic biological needs such as
food, sleep, and sex, the way we fulfill those needs varies cross-culturally.
● Culture is shared. Because we share culture with other members of our group, we are able to act
in socially appropriate ways as well as predict how others will act. Despite the shared nature of
culture, that doesn’t mean that culture is homogenous (the same). The multiple cultural worlds
that exist in any society are discussed in detail below.
● Culture is based on symbols. A symbol is something that stands for something else. Symbols vary
cross-culturally and are arbitrary. They only have meaning when people in a culture agree on
their use. Language, money and art are all symbols. Language is the most important symbolic
component of culture.
● Culture is integrated. This is known as holism, or the various parts of a culture being
interconnected. All aspects of a culture are related to one another and to truly understand a
culture, one must learn about all of its parts, not only a few.
● Culture is dynamic. This simply means that cultures interact and change. Because most cultures
are in contact with other cultures, they exchange ideas and symbols. All cultures change,
otherwise, they would have problems adapting to changing environments. And because cultures
are integrated, if one component in the system changes, it is likely that the entire system must
adjust.

Characteristics of Civilization
● the presence of geographic boundaries and political institutions
● an economy that produces food surpluses
● a concentration of population in distinct areas or cities
● the existence of social classes
● developed systems of religion, learning, art, and architecture
● a system of record keeping
● technology

26.a)associations
An association can be called a group of people who come together to achieve any particular purpose or
goal and that too for a limited period of time. An association is different from a normal group or team in
the way that it sticks to formal space.

b)institutions
Institution is an abstract thing which refers to those rules and regulations, norms and values which come
into being through social interaction and subsequently regulate the behaviour pattern of the members of
the society. The established ways of doing things not only bring unity among the members of the society
but also help the members to predict the behaviour of others.

c)social group- a social group can be defined as two or more people who interact with one another, share
similar characteristics, and collectively have a sense of unity
27.a)Difference between community and Society

For example, within one society there are different communities such as based on the profession: fishing
community, farming community, the business community

b)various levels of social interaction

Social interaction is the process by which we act and react to those around us. In a nutshell, social
interaction includes those acts people perform toward each other and the responses they give in return.
Having a quick conversation with a friend seems relatively trivial.Social interactions include a large
number of behaviors, so many that in sociology, interaction is usually divided into five categories. These
are: exchange, competition, cooperation, conflict and coercion.

28.Importance of creating social interactive spaces in built environment

Ans- Interactive space does not only provide unique experience but can also create situations engaging
users and groups of users in common activities, requiring them to act independently or in groups.

29.Meaning of personality various types of personality and determinants of personality

ans-personality, a characteristic way of thinking, feeling, and behaving. Personality embraces moods,
attitudes, and opinions and is most clearly expressed in interactions with other people. It includes
behavioral characteristics, both inherent and acquired, that distinguish one person from another and that
can be observed in people’s relations to the environment and to the social group.

30.scope of sociology and its application in architecture

ans-Sociology seeks to explore how societies emerge, persist and then change. Its scope includes study of
social groups, social institutions and social processes. Scope of Sociology is more in the direction of an
analysis of social problems and not in normative suggestion of solutions for these social problems.
It provides quantitative and qualitative research tools to anticipate how designs impact people on a variety
of levels. This thing is, sociologists need not necessarily be architects, but architects have to necessarily
be sociologists to understand how people think and react to element in the built environment.

31.culture and it influence in architecture

Culture reflected in architecture helps create or maintain identity in today’s world of globalization and
internationalism. It also helps maintain the integrity of the society. This principle makes sure that the user
is a good member of the society he/she belongs to. Hence good societies need architecture sensitive to
their culture. It is important to consider the way culture can reflect in and simultaneously influence the
growth of the architectural medium. Along the way, with the advent of modernism, this principle has been
forgotten. Buildings don’t have a unique style; they don’t even come close to creating or even
maintaining identities. We seem to have forgotten the way our ancestors used to do things. We must
realize that architecture and culture are two sides of the same coin. The faster we realize that the better.
We can avoid the progression of architectural uniformity of the future world. People should always be
allowed to express themselves and buildings should let them.