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Economic system of complex societies

The complex societies have high degree of division of labor and consequently structural differentiation. Thus economic activity constitutes a specialized activity taking place in special institution framework and distinguishable from other types of social activity e.g. factories, banks and markets are some of the distinct economic activities.

High division of labor implies advanced skills which help in high productivity. The economic organization can easily sustain a large population.

Complex societies due to their high productivity generate huge surplus. They can support conspicuous consumption.

Market exchange is the pivotal form of exchange and money is the universal medium of exchange.

The members of the complex societies have high achievement motivation and the economic behavior is characterized by an intense preoccupation with generation and accumulation of surplus.

There exist a clear distinction between domestic economy and community economy. The domestic units are the units of consumption and supply the manpower to the community economy. The production of goods and services takes place in the larger units which form part of the community economy.

These societies are characterized by the high level of scientific and technological advancements. Economic activity is perceived in secular terms and is based on practical rationality.

High degree of specialization, rapidity of change, predominance of practical and excessive mechanization of production leads to a state of anomie in society and alienate the worker from the product of his labour.

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