This document summarizes key aspects of the sociology of the economy. It defines economy as the structuring and functioning of human and natural resources for production, processing, distribution, and consumption of goods and services. The economy influences social habits and norms. It provides subsistence, drives social change, and maintains balance among social systems. Economic systems are classified based on development level, sector, and ownership model. The social subsystems of an economy include property, technology, division of labor, and work organization. Private property is owned by individuals while public property is governed. Technology development depends on ideas, application, and diffusion through society. Division of labor involves specialization of tasks. Work organization manages economic structures and problem-solving.

1. Chapter. 12
“Sociology of the Economy”
BY:J.Q

2. Economy
 - it refers to the structuring and functioning of the
development and utilization of human and natural
resources in the production, processing, distribution and
consumption of material goods and services.
 Importance
 - influence habits, skills, knowledge, expectation,
motivation
 - affects social norms, values and personal relationship
within the society

3. Functions of the Economy:
 1. It provides physical subsistence for a society.
 2. It generates as well as incorporates social changes for the
continuity of society.
 3. The economy maintains a balance with the other social
systems and among its subsystems in the production,
distribution, and consumption of economic goods and
services.
 4. The economic institution indicates the nature of social
stratification in the society, shows class and mobility
differences in relation to status differentials and reflects
relative ranking.

4. The social structure of Economy
 Economic systems are classified:
 - underdeveloped or developed
 - agricultural or industrial
 - substinence or mechanized
 - capitalistic or communistic

5.  Scales in classifying the level of economy:
 1. the number and types of occupation that people engage in.
 2. the use of money as a medium of exchange
 3. the extent and degree of application of mechanized power
to economic activities
 4. family income and expenditures.
 5. the quantity and quality of material possessions.
 6. the prevailing social norms and value orientation on
property, work, exchange, leisure and others.

6. Social Subsystems of Economy
Social subsystems includes :
 1. Property
 2. Technology
 3. Division of labour
 4. Organization of work

7. 1. Property
 – refers to the network of rights and duties of one person
or group as against all other persons and groups ( Davis,
1949)
 It can be differentiated as:
 - private property
 - public property

8. Private property
 – free from direct and state controls and is generally
transferred from the owner to their duly designated heirs.
Ex: land, buildings , money
Public property
 – is subject to governmental restraints and is placed
under the control of the different social subsystems of the
government.
 Ex. parks, playgrounds, streets, sidewalks, schools, libraries
and other property regularly used by the general public

9. 2. Technology
 - consists of the knowledge, skills, and attitudes necessary to
convert available resources into objects people need and
want.
 -views technology as the major factor which influence the
behaviour and attitudes of the people ( Haralmbos and
Holborn, 1990)
Technological advances consist of 3 factors:
1. creative, reasonable idea
2. practical application
3. diffusion through society

10.  Characteristics of Population that affect
technology are:
 1. the rate of its growth
 2. the directions of its mobility
 3. the density or pressure of its distributions
 4. its supply of technically skilled workers, technicians, and
managers.
 5. its value orientation and beliefs with regard to the
acceptance or rejection of technological innovations.

11.  Importance aspects of the social organization in
relation to technology are:
 1. the size and homogeneity of the population
 2. the structure of leadership and followership and their
corresponding personality characteristics.
 3. the types of social interactions involved

12.  Some criteria on which to base the extent and
possibilities of technological development are:
 1 accumulated body of technological knowledge
 2. technical skills
 3. institutional structures and value orientation
 4. population growth

13.  3. Division of Labor
 - is the specialisation of cooperating individuals who perform
specific tasks and roles
 - represents the differentiation of functions.
 4. Organization of Work
 - concerned with the application of sociological principles to
the study of economic structures and the values and
ideologies.
 - management of solving problems in relation to economy.

14. THE END..