Sociology and Economics as social sciences have close relations. Relationship between the two is so close that one is often treated as the branch of the other, because society is greatly influenced by economic factors, and economic processes are largely determined by the environment of the society.
Economics deals with the economic activities of man. It deals with production, consumption and distribution of wealth. The economic factors play a vital role in the very aspect of our social life. Total development of individual depends very much on economic factors. Without economic conditions, the study of society is quite impossible. All the social problems are directly connected with the economic conditions of the people. That is why Marshall defines Economics as “on one side the study of wealth and on the other and more important side a part of the study of man.”
In the same way Economics is influenced by Sociology. Without the social background the study of Economics is quite impossible. Sociologists have contributed to the study of different aspects of economic organisation. Property system, division of labour, occupations etc. are provided by a sociologist to an economist.
The area of co-operation between Sociology and Economics is widening. Economists are more and more making use of the sociological concepts in the study of economic problems. Economists are working with the sociologists in their study of the problems of economic development in underdeveloped countries. Combined efforts of both the experts may be of great practical help in meeting the challenges.