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.
Which of the following is stated in the lines left out of the passage about how sociologists view markets?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → As social institutions constructed in ways that vary by culture
Option (1) As social institutions constructed by the colonial state — Incorrect. The colonial state opened up tribal areas and drew them into wider markets. That is a later historical change, and it is not how sociologists define markets in general.
Option (2) As social institutions organised mainly around kinship ties — Incorrect. Kinship ties do shape some trading networks. Sociologists do not reduce markets to kinship alone, since groups, classes and many institutions shape them.
Option (3) As social institutions shaped by the needs of capitalist production — Incorrect. Linking markets to the needs of capitalist production is the view of Marx and other critics of capitalism. The lines left out of the passage speak of culture shaping markets and are silent on production.
Option (4) As social institutions constructed in ways that vary by culture — Correct. Sociologists view markets as social institutions built in culturally specific ways. So a market takes a different form in each society, depending on its culture and social groups.
NCERT (2026-27): “4.1 Sociological Perspectives on Markets and the Economy … |