There are the five components of economic structure which are Property ownership, Labor force, Distribution of products, Economic norms and Exchange value. Each of the components is explained in detail below.
Property Ownership
Property ownership is dependent upon the economic system followed by the state. In capitalist system property and the means of production are privately owned by the people and they use it for their personal gain and the profit and loss is totally depend on free market competition. However in socialist system the property is owned and regulated by the state for the benefit of society. The outcome from the property and means of production is spent for the benefit of people.
Labor Force
Labor force are the most vital component in economic structure. Due to their efforts and work, economic institutions are functioning. The process of production is managed by the laborers.
Distribution of Products;
After production the commodities are distributed into different groups of traders and businessmen. They further market the product and skim profit out of it.
Economic Norms;
Each economic institution has its own norms of production and distribution. It may differ in different economic sectors. Agriculture commodities production and distribution differs from the industrial goods production and distribution. Via economic norms industries are regulated.
Exchange Value
The exchange value of the goods produced are measured in cash. Some societies still use the barter system in which they exchange one commodity with another. However in modern societies currency is used for the exchange of goods.
