GOOD MORNING

ECONOMIC INSTITUTION

An economic institution provides the

distribution of goods and services to the
members of the society.
A good societies have 5 essential parts for the
economic system to function accurately. These
are production system ,service system
distribution system ,consumers system and a
system of exchange
The most important function of an economic
institution is the production and distribution of
goods and services. However, the economic
institution also cause some socialization that bring
about a distribution of power. It also influences the
culture and affects social stratification.
 RECIPROCITY
In cultural anthropology, reciprocity refers to the
non-market exchange of goods or labor ranging
from direct barter to forms of gift exchange
where a return is eventually expected as in the
exchange of birthday gifts. Reciprocity is said to
be the basis of most non-market exchange.
 TRANSFER
A change of ownership of an asset or a
movement of funds and/ or assets from a
account to another. Transfer may involve
an exchange of funds when it involves a
change in ownership. Such as when an
investor sells a real estate holding. In
this case, there is a transfer of title from
the seller to the buyer.
 REDISTRIBUTION

In modern mixed market economies, the central form of

redistribution is facilitated through taxation by the
state. Redistribution of property therefore occurs where
properties are allocated back to individuals or group
within society either through the provision of public
service or directly through welfare .
 MARKET TRANSACTION
This is the exchange of goods and service
through a market. The set of market transaction
taking place in the economy is most important
in terms of measuring gross (GDP). Market
transactions provide the basic data used by
number crunchers at the National Economic
development Authority to begin the estimation
of GDP.
However, these number crunchers don’t just want
to measure market transactions, their goal is to
measure economic production . As such, they
eliminate some market transaction that do not
involve economic production, and then add
economic production that do not involve market
transactions.
 MARKER

An actual or normal place where force of demand

and supply operate, and where buyers and sellers
interact to trade goods, services, or contracts or
instruments, for money or barter is called a
MARKET. Market include mechanisms or mean for
) Communicating the price information,
1

2) Determining price of the traded item,

3) Facilitating deals and transaction, and
4) Effecting distribution.

The market for a particular item is made up of

existing and potential customers who need it and
have the ability and willingness to pay for it.
A market is one of the many varieties of systems,
institution, producer, social relations and
infrastructure whereby parties engage in exchange.
It can be said that market is the process by which
the price of goods and services are established.
Markets allow any tradeable item to be evaluated
and priced
 STATE
State is an organized political community living
under single system of government, often state and
government are used as synonyms. Both words
refer to an organized political group that exercises
authority over a particular territory.
Many human societies have been governed by
states for millennia, but many have been stateless
societies. The first state arose about 5,500 years ago
in conjunction with the rapid growth of urban
centers, the innovation of writing, and the writing,
and the codification of new forms of religion.