The document presents an overview of the economy as a social institution, exploring its role in production, distribution, and consumption. It discusses three sociological perspectives—functionalism, social conflict, and symbolic interactionism—and examines the interconnectedness of the economy with family, education, government, and religion. Additionally, it addresses issues of social stratification, corporate power, globalization, and the historical evolution of economic systems, with real-world examples including the impacts of the COVID-19 pandemic.

1. Introduction to
Sociology
MS. AMNA FAROOQ
PRESENTATION BY:
GROUP MEMBERS:
 RIMSHA KHAN
 MINAHIL IJAZ
 MUHAMMAD ABDULLAH BAIG
 MUHAMMAD SAAD
 MUHAMMAD ABDULLAH

2. ECONOMY AS A SOCIAL INSTITUTION
The economy, as a social institution, refers to the system of production,
distribution, and consumption of goods and services within a society. It
encompasses how resources are allocated, labor is organized, and wealth
is generated and distributed among individuals and groups.

3. 3 PERSPECTIVES OF SOCIOLOGY
• FUNCTIONALISM
• SOCIAL CONFLICT
• SYMBOLIC INTERACTION

4. FUNCTIONALISM
Functionalism views the economy as a vital institution that serves the needs
of society by ensuring the production and distribution of goods and services
necessary for survival and growth.
• Example: In a functionalist view, a society's economy functions like a well-
oiled machine, with each component playing a specific role. For instance, in
a capitalist economy, businesses produce goods and services, while
consumers purchase them, thus sustaining economic activity and ensuring
the functioning of the system.

5. SOCIAL CONFLICT
Conflict theory sees the economy as a site of struggle and inequality, where
power dynamics shape the distribution of resources and opportunities.
• Example: From a conflict perspective, the economy is characterized by the
unequal distribution of wealth and resources, with certain groups (e.g.,
capitalists, corporations) having more power and influence than others
(e.g., workers, consumers). This unequal distribution leads to conflicts over
wages, working conditions, and access to resources.

6. SYMBOLIC INTERACTION
Symbolic interactionism focuses on how individuals interpret and construct
meanings through their interactions, including those related to economic
activities.
• Example: From a symbolic interactionist perspective, economic activities
are imbued with symbolic meanings that influence individual behaviour
and interactions. For instance, money symbolizes power, status, and
security, and people's attitudes towards money influence their spending
habits and financial decisions.

7. Interconnectedness with Other Social Institutions
• Family
The economy impacts family structures by influencing employment opportunities, income levels, and household
consumption patterns. Economic stability or instability can affect family dynamics, child-rearing practices, and
overall family well-being.
• Education
Education systems are closely tied to the economy, as they prepare individuals for participation in the labour
market. Economic demands shape educational curricula and policies, while educational attainment influences
economic opportunities and social mobility.

8. Contd.
• Government
Governments play a crucial role in regulating economic activities through policies, taxation, and social
welfare programs. The relationship between the state and the economy affects public services, economic
stability, and the distribution of wealth.
• Religion
Religious beliefs and institutions can shape economic behaviours and attitudes towards work,
consumption, and wealth. Conversely, economic conditions can influence religious practices and the role
of religious organizations in society.

9. CULTURAL NORMS & VALUES
• Consumer Culture
Consumer culture reflects societal values and norms related to materialism and consumption. It emphasizes the importance of
purchasing goods and services as a means of expressing identity and achieving social status.
• Work Ethic
Cultural attitudes towards work and productivity significantly impact economic activities. The work ethic, often rooted in historical
and religious contexts, influences individual motivation, labour practices, and economic success.
• Value of Money
The societal perception of money and its value affects economic behaviour, including saving, spending, and investment. Cultural
norms surrounding wealth and financial success play a critical role in shaping economic systems.

10. SOCIAL STRATIFICATION
• Class Structure
Economic systems contribute to the formation and perpetuation of social classes, with distinct differences in
income, wealth, and access to resources. Class structure influences individuals' life chances, social mobility, and
overall quality of life.
• Income and Wealth Distribution
The distribution of income and wealth within a society reflects the level of economic inequality. This distribution
affects social cohesion, political stability, and the capacity for economic growth.

11. POWER & AUTHORITY
• Corporate Power
Corporations wield significant power within economic systems, influencing production processes, market conditions, and policy
decisions. Corporate dominance can lead to economic concentration and disparities in power and resources.
• Labor Unions
Labour unions represent workers' interests and seek to improve working conditions, wages, and job security. The relationship between
labour unions and employers affects labour market dynamics and economic equality.
• Globalization
Globalization involves the increasing interconnectedness of economies worldwide. It affects local economies through trade, investment,
and technological exchange, leading to economic opportunities and challenges, such as job displacement and income inequality.

12. ECONOMIC SYSTEMS & CHANGE
 Traditional Economy:
Example: In some remote villages, people still follow traditional economic practices like farming and
bartering. They rely on customs and rituals passed down through generations to determine production
and distribution.
 Market Economy:
Example: The United States and many Western countries have market economies. Here, prices are
determined by supply and demand, and individuals make economic decisions based on their self-
interest. The government's role is limited, and businesses compete for customers.

13. Contd.
 Technological Advances:
Example: The invention of the internet has transformed the way we do business. Online shopping,
digital payments, and remote work are now common, changing how goods and services are produced,
distributed, and consumed.
 Globalization:
Example: The rise of global trade has connected economies worldwide. Products made in one country
can be sold in another, leading to increased competition, outsourcing of jobs, and cultural exchange.

14. Contd.
 Economic Crises:
Example: The 2008 financial crisis led to a global recession, causing job losses, foreclosures, and
government bailouts. Such crises highlight the fragility of economic systems and can lead to
significant social and political changes.
 Social Movements:
Example: The environmental movement has influenced consumer behaviour and business practices.
People are now more conscious of their carbon footprint and seek out eco-friendly products prompting
companies to adopt sustainable practices.

15. HISTORICAL ANALYSIS
Agrarian Economies:
In ancient societies, like those in Mesopotamia and Egypt, economies were primarily agricultural,
relying on farming for sustenance and trade. For example, Egyptian civilization thrived along the Nile
River due to its fertile lands, enabling agriculture to flourish.
Feudalism:
During the Middle Ages in Europe, feudalism emerged, where land was owned by nobles, and peasants
worked the land in exchange for protection. The feudal system in medieval Europe is a classic example
of an economy centred around land ownership and agricultural production.

16. COMPARATIVE ANALYSIS
• Capitalism vs. Socialism:
Capitalist economies, like the United States, emphasize private ownership and free markets, with
competition driving innovation and efficiency. Socialist economies, like Sweden, prioritize public
ownership and welfare policies, aiming to reduce inequality and provide social services.
• Developed vs. Developing Economies:
Developed economies, such as Japan and Germany, have high levels of industrialization and income,
with advanced infrastructure and services. Developing economies, like India and Brazil, are still
industrializing and face challenges like poverty and inadequate infrastructure.

17. Contd.
• Post-Industrial Economies
Some economies, like those in Western Europe, have shifted towards post-
industrialism, emphasizing services and knowledge-based industries. For
example, countries like Switzerland and Sweden have vibrant service
sectors, including finance, healthcare, and education.

18. CASE STUDY
COVID-19 Pandemic and Economic Impacts:
• The COVID-19 pandemic caused a global economic downturn, leading to
job losses, business closures, and disruptions to supply chains.
• Social distancing measures and lockdowns affected various sectors of the
economy, with service industries such as hospitality, tourism, and retail being
hit hardest.
• Governments implemented stimulus packages and support measures to
mitigate the economic fallout and assist affected individuals and businesses,
highlighting the interconnectedness between economic policies and social
welfare.