A) ECONOMIC INSTITUTIONS:
It is a set of norms relating to production & distinction of goods and services. The economy means the dominant form of economic activity present in a society e.g.
- Collecting and hunting economy.
- Nomadic –post oral economy.
- Settled agricultural economy.
- Modern urban industrial economy.
a) CAPITALISM: It is an economic system in which the property of economic institution is owned and controlled by individuals.
b) SOCIALISM: It is an economic system in which the property of economics institutions is owned and controlled by the state.
B) STRUCTURE OF ECONOMIC INSTITUTIONS:
- ECONOMIC SYSTEM: An economic system of every society based on ideology by which control and are of capital goods and services is achieved.
- DIVISION OF LABOR: Division of labour has made the economic activities of the individual most efficient, organized and effective.
- COMPETITION: The economic structure based on competition provides formal and informal norms for production and distribution of goods and services.
- ECONOMIC ORGANIZATION: In a society, there are different economic organizations which give different roles and status two its members e.g. trusts partnership etc…
- ECHNOLOGY: Technology in every field of economy is introduced all over the world.
C) FUNCTIONS OF ECONOMIC INSTITUTIONS:
- To regulate and control the capital goods and services in a society.
- To satisfy human needs.
- They play important role in socialization.
- Its play role in social satisfaction.
- It provides priority to the individual belonging to a higher economic status.
- To provide specialization in process of production and distribution.
- To provide power and authority to their owners.
- They higher economic status is closely associated with greater political hold in society.
D) ECONOMIC INSTITUTIONS IN AGRICULTURE:
Some Important Economic Institutions in Agriculture are as follows:
- Agricultural farming.
- Chemical fertilizer.
- Irrigation system.
- Harvesting of crops by labour.
- Land tenure system.
- Agricultural department.
- Agricultural sale depots, flour mills.
E) ECONOMIC INSTITUTIONS IN INDUSTRY & TECHNOLOGY:
Some Important Economic Institutions in Industry & Technology are as follows:
- Textile industries.
- Pharmaceutical industries.
- Shoes industries.
- Electronic industries.
- Mechanical industries.
- Transport vehicles industries.
- Big shops markets etc…