It has sovereignty and may legally force groups and individuals to obey its laws. The state also has a government , the group of people who operate the apparatus of the state, and determine and enforce policies. Control over government may be exercised by al the people as in a democracy or by only a few people in their own interests, as in an oligarchy . The Economic Institution - is that social structure or structures related to the production and distribution of goods and services, the meeting of a society s economic needs. Williams notes that the American economic institution often appears to be the most conspicuous feature of our social structure.
Capitalism is based on private ownership of the means of production and on competition for profits.
Capitalism is an economic system in which the wealth of society is held privately wealth that is used by its owners to create more wealth. Profits are reinvested rather than accumulated as wealth. Socialism is an economic system in which such productive tools as labor, capital, and land are owned and managed by the group as a whole or by its agent the state. Economic systems usually combine elements and characteristics of both capitalism and socialism. In less complex, nonindustrialized societies, it is difficult to distinguish economic activities from family life, religion, politics, and social relations.