Economic Institutions

Kingslay Davis :
- Norms, statutes govern allocation of resources
Functions:
- To provide means to survives
Economic Activities:
- Consumption, production, exchange
distribution
Production:
- Land resources
- Capital means of production
- Labour physical, mental labour
- Entrepreneur organises production
- Wealth economic goods, services
Consumption:
- Using goods
- Utility capacity to satisfy
Exchange :
- Reaching goods from producer to consumer
Distribution:
- National product distributive
- Labourers ways
- Landlords rent
- Capital interest
- Entrepreneur projects
Modern Economic Institutions:
- property, contract, corporation
- Division of labour, wages
- Exchange
 The Property:
- Movable, immovable
- Money, valuable security
- Person has disposing power
Private Property :
- Owned by a person, group
Public property :
- Political collectivity, state
Characteristics:
- Property can be transferred
- Owner need not be user
- It gives power to owner
Contract :
- Promise enforced by law
- Deliberate engagement between parties
- To do or not to do any act
Characteristics:
- Engagement between two parties
- Lawful consideration
- Made voluntarily
 Division of labour:
- Distribution of work
- According to skin
TYPES OF DIVISION OF LABOUR
Simple division
-primitive societies- division by sex
-Underdeveloped Economy-based on occupation
-Carpenters,weavers
Complex Division of Labour
-making an article
-into many processes
Territorial Division of Labour
Durkheims concept of Division of Labour
-Division of Labour- a social fact
-modern society-organic solidarity
-Mechanical solidarity-mental, moral
-Primitive Society- slight or no division of labour
-Organic solidarity-extreme division of labour
ECONOMIC SYSTEMS
The Primitive Economic System
-Collective economic system
-collection of fruits and nuts
-hunting, agriculture
-property belongs to community
-division of labour- based on sex
-we find in tribes
Agrarian Economic System
-Agriculture=main economic system
-tools used in agriculture
 -animals tamed
-no cash payments, barter
-Jajmani system
Industrial System
-modern economy-Industrial economy
-machines used
-increase in population
-growth in division of labour
-money economy dominated
-factory system of production
CHARACTERISTICS
-property right protects by lane
-intellectual property protected
-complex economic system
-increase in division of labour
TYPES OF MODERN ECONOMY
The Federal System
-vast land ruled by feudal lords
-cultivated by tenants
-serfs
-factory system led to capitalism
 The Capital Economy
-people control land machinery, labour
-workers became wage earners
FEATURES OF CAPITALIST ECONOMY
-right to private property
-right to form any company
-profit motive
-inequals toes of wealth, income
THE SOCIALIST ECONOMY
-based on public ownership
-state controls production
-classless society
-equitable distribution
THE MIXED ECONOMY
-combination of both capitalist, socialist
-industries, business owned by state
-private ownership also
-private and public partnership
FEATURES OF MIXED ECONOMY
-co-existence of public and private societies
-joint sectors-firms owned by state private shareholders
-Capitalist features-private property, profit
Socialist features-economic planning welfare of society.