Economy as a Social Institution
Economy is the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services. Economics is the social science concerned with how individuals, institution, and society make optimal choices under conditions of scarcity. There is macroeconomics and microeconomics. Macroeconomics is the part of economics concerned with the performance and behavior of the economy as a whole. It focuses on economic growth, the business cycle, interest rates, inflation, and the behavior of major economic aggregates such as the household, business, and government sectors. Microeconomics is the part of economics concerned with decision making by individual units such as household, a firm, or an industry and individual markets, specific goods and services, and product and resource prices (McConnell).
The economy is the institution that provides for the production and distribution of goods and services, which people in every society need. Sometimes they can provide these things for themselves, and sometimes they rely on others to provide them. When people rely on others for goods or services, they must have something to exchange, such as currency or other goods or services (Henslin). The customs surrounding exchange and distribution of goods and services shape societies in fundamental ways.
The basic need that economy fills as a social institution is it produces and distributes goods and services to the people. Some organizations that help this process are credit unions, banks, credit card companies, and buying clubs. Economy has values as a social institution and they are making money, paying bills on time, and producing efficiency. They also have norms for their organization and the main one is maximizing profits (Henslin).
The economy is the institution that provides for the production and distribution of goods and services, which people in every society need. Sometimes they can provide these things for themselves, and sometimes they rely on others to provide them. When people rely on others for goods or services, they must have something to exchange, such as currency or other goods or services (Henslin). The customs surrounding exchange and distribution of goods and services shape societies in fundamental ways.
The basic need that economy fills as a social institution is it produces and distributes goods and services to the people. Some organizations that help this process are credit unions, banks, credit card companies, and buying clubs. Economy has values as a social institution and they are making money, paying bills on time, and producing efficiency. They also have norms for their organization and the main one is maximizing profits (Henslin).
Works Cited
Henslin, James M. "Chapter 4: Social Structure and Social Interactions."Sociology:A Down-to-Earth Approach: Pearson New International Edition Harlow: Pearson Education Limited, 2014. 93 123. Print
McConnell, Campbell R., Stanley L. Brue, and Sean Masaki. Flynn. Economics. New York: McGraw-HIll/Irwin, 2010. Print.
McConnell, Campbell R., Stanley L. Brue, and Sean Masaki. Flynn. Economics. New York: McGraw-HIll/Irwin, 2010. Print.
No comments:
Post a Comment