ECONOMIC INSTITUTION

 An economic institution is a group of people who have come together to focus on

economic activities.
 Banks hold loan money to customers , which can be an individual or a business.
 Small businesses usually have fewer than 50 people and are owned by one person or a
very small group.
 Corporations are large complex businesses with investors called shareholders.
 RECIPROCITY
• In social psychology, reciprocity is a social rule that says people should
repay ,in kind, what another person has provided for them; that is,
people give back(reciprocate) the kind of treatment they have
received from another.
• By virtue of the rule of reciprocity , people are obligated to repay
favors, gifts, invitations, etc. in the future.
 TRANSFER
• 1.Banking: Moving funds among two or more accounts held by the
same or different entities.
• 2. Real estate: Conveyance of title to a property from the seller to the
buyer through a deed of transfer, following payment of the price.
• 3. Securities trading: Delivery of a stock (share) certificate by the
seller’s broker to the buyer’s broker followed by conveyance of the
title by recording the change in the stock (share) register.
 REDISTRIBUTION
• In Economics the theory , policy, or practice of lessening or reducing
inequalities in income for example through such measures like
progressive taxation and anti poverty programs.
 MARKET TRANSACTIONS
• The exchange of goods and services through a market. The set of
market transactions taking place in the economy is most important in
terms of measuring gross domestic product(GDP).
• Market transactions provide the basic data used at the Bureau of
Economic Analysis to begin the estimation of GDP.
 State-market relations
• Call for a holistic view of the relationship between the material and
relational dynamics of society,
• On the one hand , and between these dynamics and institutional
dynamics on the other.
• The state contains mechanisms that are essential to the existence of
markets themselves , and these mechanisms are not “natural “ given.
• Economics are actually institutional production systems wherein the
material density of the state both as organization and administration
is of relevance.