ECONOMIC INSTITUTIONS

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.

  1. Collecting and hunting economy.
  2. Nomadic –post oral economy.
  3. Settled agricultural economy.
  4. 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:

  1. ECONOMIC SYSTEM: An economic system of every society based on ideology by which control and are of capital goods and services is achieved.
  2. DIVISION OF LABOR: Division of labour has made the economic activities of the individual most efficient, organized and effective.
  3. COMPETITION: The economic structure based on competition provides formal and informal norms for production and distribution of goods and services.
  4. ECONOMIC ORGANIZATION: In a society, there are different economic organizations which give different roles and status two its members e.g. trusts partnership etc…
  5. ECHNOLOGY: Technology in every field of economy is introduced all over the world.

C) FUNCTIONS OF ECONOMIC INSTITUTIONS:

  1. To regulate and control the capital goods and services in a society.
  2. To satisfy human needs.
  3. They play important role in socialization.
  4. Its play role in social satisfaction.
  5. It provides priority to the individual belonging to a higher economic status.
  6. To provide specialization in process of production and distribution.
  7. To provide power and authority to their owners.
  8. 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:

  1. Agricultural farming.
  2. Chemical fertilizer.
  3. Irrigation system.
  4. Harvesting of crops by labour.
  5. Land tenure system.
  6. Agricultural department.
  7. Agricultural sale depots, flour mills.

E) ECONOMIC INSTITUTIONS IN INDUSTRY & TECHNOLOGY:

Some Important Economic Institutions in Industry & Technology are as follows:

  1. Textile industries.
  2. Pharmaceutical industries.
  3. Shoes industries.
  4. Electronic industries.
  5. Mechanical industries.
  6. Transport vehicles industries.
  7. Big shops markets etc…
  8. Banks.

 

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