Unpacking the Role of the Economy in Society: How It Shapes Our Lives

Question: The economy as a social institution The economy and society are interlinked, as modern society depends on the economy for survival. The economy refers to a set of arrangeme nts by which a society produces , distributes and consumes goods, services and other resources (Barkan, 2012: 594). The economic system is very important in society as it propagates the transfer of materials. There are two dominant economic systems in the world: capitalism and socia lis!.!.!;__ Both of these systems have the same purpose of ens uring economic stability, but are structured differe ntly. Different countries subscribe to different economic systems (Wiggins & Davis , 2006). Capi talism is a system where private owners contro l the country 's trade and industry. Socialism is a system where the means of production are owned and contro lled by the government or the community as a whole (collective ownership) (Barkan, 2012: 596). Question 1 1.1. read the text above and answer what is the role of the economy as a social institution (take answers from the text)