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Economy As Social Institution

This document provides an overview of sociology and economics. It defines economy as the social institution that organizes a society's production, distribution, and consumption of goods and services. It discusses the emergence of distinct economic institutions through major historical developments like the Agricultural Revolution, Industrial Revolution, and rise of the postindustrial economy. It also outlines the three sectors of economy - primary, secondary, and tertiary. Finally, it briefly describes the major economic models of capitalism, based on private property and profit, and socialism, based on collective ownership through government control.

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Hassan Shafiq
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57 views14 pages

Economy As Social Institution

This document provides an overview of sociology and economics. It defines economy as the social institution that organizes a society's production, distribution, and consumption of goods and services. It discusses the emergence of distinct economic institutions through major historical developments like the Agricultural Revolution, Industrial Revolution, and rise of the postindustrial economy. It also outlines the three sectors of economy - primary, secondary, and tertiary. Finally, it briefly describes the major economic models of capitalism, based on private property and profit, and socialism, based on collective ownership through government control.

Uploaded by

Hassan Shafiq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Sociology

Presented By:
Ms. Dilawaiz
UVAS, Lahore
Today’s Agenda
• Introduction
• Definition
• Emergence & Development of economic institution
• Major Economic Models
Introduction
• The economy is the social institution that organizes a society’s production,
distribution and consumption of goods and services. Economic activity
deals with goods and services needed for the satisfaction of human wants.
It involves land, capital, labour and entrepreneurship.
• The type of economy often depends upon the political form of
government. How does the state control the flow of money, goods and
services? What is the status of private property? What is the role of free
market in the economic system? are the questions that illustrate the
relationship between the state and economy.
Definition
Economy is a “social institution that organizes a society’s production,
distribution and consumption of goods and services“.

In technologically simple societies, economic activity is simply part of


family life.
Emergence & Development of economic
institution
Agricultural Revolution
The agricultural revolution (5,000 years ago) made the economy a distinct
social institution based on
• agricultural technology
• specialized work
• permanent settlements
• trade
Industrial Revolution
The industrial revolution (beginning around 1750) expanded the economy
based on

• new sources of energy (invention of steam engine)


• centralization of work in factories
• specialization and mass production
• wage labor
The Postindustrial Economy
The postindustrial economy, propelled by the information revolution,
which began around 1950, is based on

• a shift from industrial work to service work


• computer technology
Three Sectors of the Economy
The primary sector: draws raw materials from the natural environment.
• is of greatest importance (26% of the economy) in low-income nations.
Examples: agriculture, fishing, mining.
The secondary sector: transforms raw materials into manufactured goods
• is a significant share (25%–35%) of the economy in low-, middle-, and high-
income nations.
Examples: automobile and clothing manufacturing.
The tertiary sector: produces services rather than goods.
• is the largest sector (49%–73%) in low-, middle-, and high-income countries
Examples: secretarial work, sales, teaching.
Major Economic Models
Capitalism
Capitalism
Capitalism is based on private ownership of property and the pursuit of profit
in a competitive marketplace.
Capitalism results in
• greater productivity
• higher overall standard of living
• greater income inequality
• freedom to act according to self-interest

Example: The United States has a mostly capitalist economy.


Socialism
Socialism is grounded in collective ownership of productive property through
government control of the economy.
Socialism results in
• less productivity
• lower overall standard of living
• less income inequality
• freedom from basic want

Examples: The People’s Republic of China and Venezuela have mostly


socialist economies.
Thank You

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