Sociology
(Assignment # 3)
What is Economy?
Economy refers to how goods, services, and wealth are produced, distributed, and
consumed in society. It's about money, jobs, businesses, and the resources that help
society function. The economy is like the system that helps people get what they need,
like food, clothes, or a place to live.
• Example: When people work and earn money, when companies produce
products, or when you buy something at a store, that's part of the economy.
What is Politics?
Politics is about how decisions are made in society. It involves governments, rules (laws),
and leaders. Politics helps decide how society should work, like who should be in charge,
what laws should be made, and how things should be managed to help everyone.
• Example: Voting for leaders, creating rules about how to drive, or making
decisions about healthcare are all part of politics.
Aspects of Economy and Politics in Society
1. Impact on People’s Daily Lives
Economy: Affects how much money people earn, how much things cost, and how easily
they can buy what they need.
Example: If the economy is doing well, people may have higher wages and be
able to afford better goods and services.
Politics: Affects laws that impact how people live, like rules about voting, education,
healthcare, and public safety.
Example: Politics decides if there will be free public schooling or if people need to
pay for healthcare.
2. Control Over Resources
Economy: Involves how resources like land, labor, and capital (money and tools) are
used to produce goods and services.
Example: A company decides how to use its workers and equipment to produce
products and make a profit.
1|Page
Politics: Involves how resources are shared, controlled, and regulated by the government
or leaders.
Example: Politics decides how much land should be used for farming or protected
as nature reserves.
3: Changes Over Time
Economy: The economy can change quickly due to market forces, like new technology,
consumer preferences, or global events.
Example: The economy may change if a new technology, like smartphones,
becomes popular and creates new jobs and industries.
Politics: Political changes happen more slowly, often through elections, laws, or shifts in
government leadership.
Example: Political change might happen when a new president or government
party takes power and starts making different decisions.
4. Decision-Making
Economy: Decisions in the economy are made by businesses, consumers, and workers
based on supply, demand, and competition. Example: If more people want to buy a
product, companies might make more of it.
Politics: Decisions in politics are made by leaders or governments, often based on laws
or public opinion. Example: Politicians decide to raise taxes or create a new law to help
the environment.
5: Power and Influence
Economy: Businesses, workers, and consumers have a big role in shaping the economy
by deciding what to produce and buy.
Example: A popular company, like Apple, has influence over the economy because
many people buy their products.
Politics: Power is held by government officials, like presidents, prime ministers, or
lawmakers, who make laws and policies.
Example: The president has the power to decide on national issues, like defense
or healthcare policies.
6. Global Influence
Economy: The economy can be influenced by global trade and international markets.
Countries often depend on each other for goods and services.
2|Page
Example: A country might rely on other nations to supply it with oil or food, which
connects their economies.
Politics: Politics can also be influenced by global relations, like international agreements,
treaties, and alliances between countries.
Example: Political decisions, like joining the United Nations, can affect how a
country interacts with others globally.
7: Role in Society’s Development
Economy: The economy drives how people live and work. A strong economy creates
jobs, builds wealth, and helps improve living standards. Example: When the economy
grows, people can earn more, buy better things, and improve their quality of life.
Politics: Politics shapes the laws and systems that guide how society develops. It
decides how resources are distributed and how people’s rights are protected. Example:
Laws about education, healthcare, and public safety are made through politics to improve
society.
Comparison: Economy and Politics
Figure 1: Comparison: Economy and Politics
3|Page
