Economic Institution

Chapter 21

Liaqat Hussain

Economic Institution

IntroductionIt’s a one of the basic institute of society

Economic InstitutionDefinition

John J.Maccionis: “Economy is the social institution that organizes a society’s production, distribution and consumption of goods and services”. P,Gisbert: “The economy system is that complex of interrelated institutions through which the economy activity of man is expressed. Callhoum, Light & keeler: “the social institution that accomplishes the goal of producing and distributing goods and services with in a society called economic institution.”

Economic InstitutionMajor Economic Institutions

1. Agriculture farming.2. Chemical fertilizer and its supplying agencies.3. Irrigation systems.4. Harvesting of crops.5. Land tenure system.6. Agriculture Department.7. Production store and supplying agencies.8. Agriculture sale departments.

Economic InstitutionEconomic Structure

1. Property ownership.2. Labour Force.3. Distribution of production.4. Economic Norms.5. Exchange Value.

Economic InstitutionFunctions of Economic Institution

1. Social Stratification. 2. Power and Authority.3. Interdependence of other Institutions. 4. Socialization 5. Need Satisfaction. 6. Income generation and Employment.7. Division of Labor and specialization. 8. Provision of Funds.

Economic InstitutionEconomic Structure

1. Property ownership.2. Labour Force.3. Distribution of production.4. Economic Norms.5. Exchange Value.