The discipline of economics is aimed at understanding and explaining how markets work in modern capitalist economies. To understander sociology's response to the market in modern times, we also need to we need to go back briefly to eighteenth-century Europe and the beginnings of modern economics where Adam Smith is a central figure. His economic philosophy was given the name laissez-faire, a French phrase that means ‘leave alone’ or ‘let it be’.

Which of the following is NOT correct in relation to the study of the economy by sociologists?

Sociologists view that an economy can be studied as a separate part of society that operates according to its own laws.

The correct answer is Option 1: Sociologists view that an economy can be studied as a separate part of society that operates according to its own laws.

Option 1: Sociologists view that an economy can be studied as a separate part of society that operates according to its own laws. – Incorrect. This is the view of economists, particularly the classical economic perspective associated with Adam Smith. Sociology rejects the idea that the economy is an autonomous sphere and instead studies it in relation to society as a whole.

Option 2: Sociologists view markets as social institutions that are constructed in culturally specific ways. – Correct. Sociology regards markets as social institutions whose functioning is shaped by the culture, norms, and values of a particular society rather than as purely economic mechanisms.

Option 3: Sociologists argue that markets are often controlled or organized by particular social groups or classes. – Correct. Sociologists recognize that markets are influenced by social groups, class relations, and power structures, rather than operating independently.

Option 4: Sociologists argue market and economy have specific connections to other institutions, processes, and structures in the society. – Correct. Sociology studies the economy in relation to other social institutions such as family, politics, religion, and education, emphasizing that economic life is embedded in society.

NCERT Text: "Sociologists view markets as social institutions that are constructed in culturally specific ways (2). For example, markets are often controlled or organised by particular social groups or classes (3), and have specific connections to other institutions, social processes and structures(4). Sociologists often express this idea by saying that economies are socially ‘embedded’. This is illustrated by two examples, one of a weekly tribal haat, and the other of a ‘traditional business community’ and its trading networks in colonial India."