Question

Sociologists have outlined three types of economic systems. Name each one and give a brief description of it.

Answer 1

Pre-industrial, industrial, and post-industrial are three types of economic systems outlined by sociologists.

Descriptions -

Pre-industrial: In this economic system, the dependence of the population is largely on agriculture and allied occupations. The penetration of technology in this system is negligible. Most activities are carried out manually and thus, the productivity is way too less. This system is characterized by little to no economic prosperity and a prolonged lack of sound financial sources.

Industrial: Major dependence on machines and advanced technology for mass production of goods is the main characteristic of this system. This system also helps in reducing disguised employment and increasing real employment. A faster flow of output against the input is the primary reason behind the growth evident in this system.

Post-industrial: This economic system is characterized by the exchange of services more than tangible commodities. This system is comparatively the fastest as far as growth is concerned. Only because there are no physical goods involved, this system functions the fastest. Services like management, consultancies, administration, etc, are parts of this system.