ECONOMY

One of the social systems in the totality of

social organization.
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.
1. Mans economic activities greatly influence
his habits, skills, knowledge, motivation,
aspiration and ideology.
. Mans economic behavior affects the social
norms, values and personal relationships
within the society.
Economic development
o ! means and an end of economic system
o Refers to the ever"increasing application of
rational, productive techni#ues throughout
the whole economy.
Interrelation between mans economic activity
and his social behavior
o $o understand mans economic life, one has
to consider the society and culture that
influence it.
o $o understand social organization, we must
analyze the societys various economic
considerations and conte%ts.
Sociology of Economy
o &tudies the social relations of production,
processing, distribution and consumption of
the material goods and the influence of
economic institutions on social
organizations and social change.
Social Structure of Economy
o grarian economy ' agriculture dominates
o Industrial economy ' manufacturing, trade
and commerce and services dominate
o Subsistence economy ' the family is the
center of economic activities( and
simultaneously the production, processing,
and distribution unit( the family provides for
most of its needs( system of e%change is
barter
o Mechani!ed economy ' employ toe the
large e%tent and degree, mechanized power
for the production, processing and
distribution of economic good( i.e. factories,
units of transportation and communication,
arkets and stores, banks, media
o "nder#developed economy ' a great part
of the natural and human resources are
virtually untapped
o $ighly developed economy " a high
degree of mechanization, industrialization,
urbanization, automation and a high level of
living e%ists
o Capitalism ' enables a person, through
free enterprise, to keep the products of his
efforts to himself with a minimum of state
control.
o Communism ' every person, through
governmental collective ownership and
control of facilities for production,
processing, distribution and consumption,
shares e#ually in the goods produced by the
society.
%he Social Subsystems of Economy
&roperty ' the network of )rights and duties
of one person or group as against all other
persons and groups with respect to some
scarce goods.*
o $enure, ac#uisition and distribution of
ownership and control of property
depend greatly on the e%isting social
norms and value orientation of people
toward it. +non"rational and rational
orientation,
- &rivate property ' comparatively free
from direct state controls and is
generally transferred from the owners
to their duly designated heirs.
- &ublic property ' sub-ect to
governmental restraints and is placed
under the control of the different social
subsystems of the government.
o Single proprietorship ' more common
type of ownership wherein the owners
are the managers.
%echnology ' consists not only of
machines e#uipment and tools, but also of
the fund of knowledge, skills and attitudes
necessary to convert available resources,
into ob-ects that men need and want.
'ivision of (abor ' represents the
differentiation of functions, institutional and
economic roles ' performed by the
individual members and small groups of the
society.
Organi!ation of )or* ' concerned with the
application of sociological principle to the
study of economic structures, changes in
these structures and the values and
ideologies related to them.