economy as a social institution

   Economy is the institution that provides for the production and distribution of goods and services. People in all different societies need this. Most people can provide these things for themselves or maybe some people cant provide it for themselves so they rely on others to provide for them. When there are people who want others to provide for them, there must be something that they have to be able to exchange with that person or persons. For example, Money.Money can be given to someone in exchange for what they are providing for you. Another good exchange you could make are other goods or services in exchange for someone else's good and services. Economy affects the lives of everyone around the world. for example, capitalism. With capitalism, resources and the means of production are privately owned. People are encouraged to provide for themselves and seek profit for themselves. Some people can not seek profit for themselves and so they become affected negatively. But if someone can seek profit for themselves then they will benefit the most.







.http://www.econlib.org/library/Topics/College/economicinstitutions.html