1. Economic Institutions
Economic institutions organize how a society produces, distributes, and consumes goods and services, shaping the division of labor and class structure.
Capitalism (private ownership, market allocation) vs. socialism (collective/state ownership, planned allocation); most modern economies are mixed. Durkheim's division of labor: mechanical solidarity (bonds from similarity, typical of small traditional societies) vs. organic solidarity (bonds from interdependent specialization, typical of complex industrial societies). Globalization increases economic interdependence across societies.
Mechanical solidarity (based on shared beliefs and similarity) vs. organic solidarity (based on interdependence created by specialization) --- students often reverse which one describes ``traditional'' society.
The exam may describe a small, homogeneous society with strong shared norms and ask which solidarity type this is --- the answer is mechanical, not organic, even though ``organic'' sounds more natural or traditional.
Division of labor $arrow$ mechanical (alike) vs. organic (interdependent) solidarity.