ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Economy as a Social Institution According to the Cambridge Dictionary of Sociology, the term ‘economy’ refers to “the social organizations and institutions that are involved in the production and distribution of goods and services in society” (Ingham, 2006, p. 158).

Detailed explanation-2: -Economic institutions work in modern society to ensure the production, distribution, and consumption of goods and services.

Detailed explanation-3: -The economy is the system of production, distribution, and consumption of goods and services. There are different types of economies: command, traditional, market, and mixed. Each varies in their ideals and systems of controls.

Detailed explanation-4: -Let us see what the basic institutions of the market economy are. We may subdivide them for convenience of discussion into (1) private property, (2) free markets, (3) competition, (4) division and combination of labor, and (5) social cooperation.