Modern economics developed from the ideas of early thinkers such as Adam Smith, and is based on the idea that the economy can be studied as a separate part of society that operates according to its own laws, leaving out the larger social or political context in which markets operate. In contrast to this approach, sociologists have attempted to develop an alternative way of studying economic institutions and processes within the larger social framework. … For example, markets are often controlled or organised by particular social groups or classes, and have specific connections to other institutions, social processes and structures.
The line in the book right after this passage gives the word sociologists use for economies tied to other institutions and social structures. Which word is it?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Embedded
Option (1) Integrated — Incorrect. Integrated means joined into one whole. Sociologists speak of markets being linked to wider economies, but the word they use for an economy tied to social structures is a different one.
Option (2) Stratified — Incorrect. Stratified describes a society divided into unequal layers, such as castes or classes. It names a pattern of inequality and not the tie between an economy and other institutions.
Option (3) Regulated — Incorrect. Regulated means placed under rules set by the state or another authority. It speaks of control by law and not of the links between economic life and social groups.
Option (4) Embedded — Correct. Embedded is the word sociologists use. An economy is socially embedded when its markets are controlled by social groups and connected to other institutions and structures.
NCERT (2026-27): “4.1 Sociological Perspectives on Markets and the Economy … |