The document provides an overview of economics as a social institution. It discusses key concepts including: 1. Economics is defined as the study of production, distribution, and consumption of goods and services. It examines how societies organize these activities. 2. Major economic systems include capitalism, socialism, and blended systems. Capitalism is based on private ownership while socialism involves collective or state ownership. 3. Economies have shifted from primarily agricultural to industrial to service-based as technological changes occurred. Primary sectors involve extracting raw materials, secondary sectors transform materials into goods, and tertiary sectors provide services. 4. Globalization has integrated national economies and raised concerns about inequality and worker rights across borders. Future economic models

1. ‫الرحيم‬ ‫الرحمن‬ ‫هللا‬ ‫بسم‬

2. PRESENTED TO: MAM TANZEELA
PRESENTED BY:19011504-023
19011504-042
19011504-049
19011504-052
19011504-057
19011504-061
COURSE: SOCIOLOGY SOC-101
SEMESTER: (B.S)2ND
DEPARTMENT: ISLAMIC STUDIES

3. ECONOMY
AS SOCIAL INSTITUTION….

4. What is social institution….?
A group of social positions , connected
by social relations performing a social
role, e.g. universities, government and
families etc….
It is a major sphere of social life
organized to meet some human needs…

5. Characteristics of an institution….
1:Satisfaction of
needs…
2:Perception of
rules…
3:Abstractness…
4:Cultural symbol…
5:Universality…

6. Characteristics of an institution….
• Social in nature…
• Institutions are
controlling
mechanism…
• Relatively
permanent…
• Oral and written
• Institutions are
interrelated…

8. Major social institutions…
Family Education Government Religion Economy

9. What is economy…?
Economy is Greek word. Adam smith is father of
economics.
He defines economics as the study of labor, land
and investment of money, income and production
and of taxes and government expenditures.

10. Characteristics of Economics…
Economics asks how goods and services will produce.
Economics analyze every economical movement.
Economical study helps us to know export certain
commodities and importing other commodities.
Economics is he study of money, banking, capital and
wealth.
Economics is a discipline with regard to efficiency.

11. Types of Economics…
There are
two type of
economics;
1: Micro
Economics
2: Macro
Economics

12. Microeconomics…
Microeconomics concerned with
specific economic units of parts that
makes an economic system and
relationship between those parts.
Emphasis is placed on understanding
the behavior of individual firms,
industries, households, and ways in
which such entities interact.

13. Macroeconomics…
Macroeconomics concerned with the
economy of whole, or large segment of
it.
It focus on problems as role of
unemployment, the changing level of
prices, the nation's total output of goals
and services, and the ways in which
government raises and spends money.

14. Economy as social
institution…
The economy is a social institution that organizes a
society production, distribution, and consumption of
goods and services. (John J.Macionis)
An economic institution is the set of norms related to
production and distribution of goods and services.
(Iqbal Chaudhary)

15. Goods and Services
Goods are
commodities
ranging from
necessities (food,
clothes, shelter) to
luxury items (cars,
Bangla's etc.)
Services are
activities that
benefit others.
(e.g. the work
of teacher,
doctor, army or
computer
software
specialist)
Goods
Services

16. Historical overview
The economy of modern nations are the result of
centuries social change.
Three technological revolution organized production and
transformed social life.
1:Agricultural
Revolution…
2:Industrial
Revolution…
3:Information
Revolution and
Postindustrial
society…

17. The Agricultural Revolution…
Simple
society
Hunting and
gathering
together
No distinct
economy
Producing
and
consuming
About 5000 years ago a new agriculture economy was created.
50 times more productive
Specialized work
Barter system

18. The four factors
With the passage of time four factors developed
which made economy a distinct social institution.
Agriculture
technology
Specialized
technology
Permanent
settlement
Trade

19. The Industrial Revolution…
Second technological revolution.
Started in 18th century.
Industry was first developed in England then in North America.
It bring more powerful change in economy than rise of agriculture.

20. Industrial Revolution…
Industrialization change the economy in five fundamental ways.
1:New sources of energy
2:Centralization of work in factories
3:Manufacturing and mass production
4:Specialization
5:Wage labor

21. Characteristics
It raised the living standards
Expand the market
But the benefits were unequal
At beginning , factory owners made vast fortunes
Workers were living close to poverty
Labor worked even for penny/day in mines
Women were amongst most lowest paid

22. The Information Revolution and
Postindustrial Society…
In 1950 nature of productivity started changed
Post industrial economy was created in U.S.A.
It is a productive system based on service work and high technology.
Automated machines were started to use, which
– Reduce the role of human labor in production
– Expand the ranks clerical workers and managers
– Shift the industrial work to service work

23. Significant changes
New kinds of products and new forms of communications
have altered the character of work
In general, there have been three significant changes:
1. From tangible products to ideas.
2. From mechanical skills to literacy skills
3. From factories to almost anywhere

24. Sectors of the Economy
The three
revolutions
shifted balance
among the three
sectors of a
society’s
economy.
Primary
sector
Secondary
sector
Tertiary
sector

25. Primary Sector
Primary sector is
part of the economy
that draws raw
materials from the
natural
environment. It
includes:
Agriculture,
Raising animals,
Fishing,
Mining and forestry

26. The primary sector is largest
in low income nations.
Primary sector constitutes economic output;
26% of economy in low-income nations
10% of economic activity in middle-income nations
Just 2% in high-income countries such as the United States

27. Secondary sector
• Secondary sector is part of economy that transforms raw
materials into manufactured goods
• Grow quickly as societies industrialized
• It includes operations such as refining petroleum into
gasoline and turning metals into tools and automobiles.
• It is a significant share (25%–35%) of the economy in
low-, middle-, and high-income nations
• Examples: automobile and clothing manufacturing

28. Tertiary sector
Tertiary sector is the
part of the economy
that involves services
rather than goods.
The tertiary sector
grows with
industrialization,
accounting for,
49% of economic output in
low-income countries,
55% in middle-income
countries, and
73% in high-income
countries.

29. About 85 percent of the U.S.
labor force is in service
work which include;
Secretarial
and clerical
work
Positions in food service
, sales, law, health care,
law enforcement,
advertising, and
teaching.

30. Percentage of economic
output
0
10
20
30
40
50
60
70
80
low-income
countries
Middle -income
countries
High-income
countries
Primary sector
Secondary sector
Tertiary sector

31. Economic sectors of
Pakistan..
Sales
Primary
Secondary
Tertiary
0
10
20
30
40
50
60
Category 1
Primary
Secondary
Tertiary

32. Sectors of Pakistani Economy
Agriculture Sector Manufacturing Sector Service Sector
1:Crops 1:Large Scale
Manufacturing (LSM)
1:Transport
2:Livestock 2:Small Scale
Manufacturing
2:Storage and
Communication
3:Fisheries 3:Slaughtring 3:Wholesale and Retail
Trade;
4:Forestry 4:Sub-Sectors 4:Finance and Insurance
(Wood and Engineering
Products, paper and board,
Tobacco, Textile
5:Housing Services
(Ownership of Dwellings)
Iron, Rubber and Steel
Products, Automobiles,
Leather Products, coke
Electronics, Chemicals
6:Genral Government
Services (Public
Administration and
Defense) and
Pharmaceutical, Non
metallic mineral, Petroleum
products and Fertilizers)
7:Other Private Services
(Social Services)

33. Preindustrial vs. industrial
vs. post industrial
Economic institution can be breakdown based on
level of economic progress achieve….
Preindustrial society: focus on primary sector
Industrial society : focus on secondary sector
Postindustrial society: focus on tertiary sector

34. Global economy
Economic activity that crosses national borders.
The development of a global economy has five major consequences.
1. division of labor
2. Increased no of products
3. No longer control of national governments
4. small number of businesses, operating internationally, now control a vast
share of the world’s economic activity
5. raises concerns about the rights and opportunities of workers.

35. Economic systems
Every society’s economic system makes a statement
about justice by determining who is entitled to what.
There are two basic models
– Capitalism
– Socialism

36. Capitalism…
Capitalism is an economic system in which
natural resources and the means of producing
goods and services are privately owned.
Consumers regulate a free-market economy.
Justice in a capitalist system amounts to
freedom of the marketplace.

37. Capitalism…
An ideal capitalist economy
has three distinctive features:

38. 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.

39. Socialism…
• Socialism an economic system in which natural resources
and the means of producing goods and services are
collectively owned.
• Justice in a socialist context means not competing to gain
wealth but meeting everyone’s basic needs in a roughly
equal manner

40. Socialism…
In its ideal form, it has three
opposite features to capitalism.
1. Collective
ownership of
property
2. Pursuit of
collective
goals
3. Government
control of the
economy

41. 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.

42. Socialism and communism…
Socialism and communism are not same.
Communism is a hypothetical economic and political system in which all
members of a society are socially equal.
Karl Marx viewed socialism as one important step on the path toward the
ideal of a communist society that abolishes all class divisions.
But this communist goal has not been achieved in any country
Marx might have agreed that a communist society is a utopia ( Greek words
meaning “no place”)

43. Blend of two systems…
These are the blends of capitalism and
socialism
1: Welfare
Capitalism
2: State
Capitalism

44. Welfare Capitalism
• An economic and political system that combines a mostly
market-based economy with extensive social welfare
programs.
• Under welfare capitalism,
• government may own some large industries such as
transportation and the mass media
• most industry is privately owned but highly regulated by
government
• high taxation of the rich helps pay for extensive government
services for all
• Examples: Sweden and Italy have welfare capitalist
economies.

45. State Capitalism
• an economic and political system in which companies
are privately owned but cooperate closely with the
government
• Under state capitalism,
• government works in partnership with large companies
by supplying financial assistance
• controlling foreign imports
• Examples: Japan and Singapore have state capitalist
economies.

46. The economy looking ahead
Social institutions are a
society’s way of
meeting people’s needs.
The U.S. economy
only partly succeeds in
accomplishing this
goal
Economy experiences
expansion and
recession
Shift from industrial
work to jobs created by
the Information
Revolution.
The postindustrial
economy has brought
rising unemployment
and declining wages
for industrial workers
A second
transformation of
recent years is the
expansion of the
global economy

47. A new model of economy
Analysts around the world are rethinking
conventional economic models
Socialism is less productive than capitalism
– Which is a reason collapse of the socialist
regimes in Eastern Europe and the Soviet Union
Capitalism has its own problems,
– high levels of inequality and a steady stream
of corporate scandal

48. First, the economic
future of the
United States and
other nations will
be played out in a
global arena
Second, it is
imperative that we
address the related
issues of global
inequality and
population
increase.
Whether the
world reduces or
enlarges the gap
between rich and
poor societies
may well steer
our planet toward
peace or war.

49. For societies to exist,
economies must exist…
What will
be the
new
economic
model…?
How and from
whom the
goods and
services be
produced…?
What goods
and services
should be
produced…?
In your ideal system, how
would you answer the
following questions…?

50. Thanks for your attention …
Any question or comment…??