Definition of Social Stratification. Social stratification refers to a system by which a society ranks categories of people in a hierarchy.In the United States, it is perfectly clear that some groups have greater status, power, and wealth than other groups. These differences are what lead to social stratification.ocial stratification refers to a system by which a society ranks categories of people in a hierarchy. Theoretically, we can analyze social stratification from three major perspectives.
For another use, see Economic, social and cultural rights. Economic freedom or economic liberty is the ability of members of a society to undertake economic actions. This is a term used in economic and policy debates as well as in the philosophy of economics. One approach to economic freedom comes from classical liberal and libertarian traditions emphasizing free markets, free trade, and private property under free enterprise.
A free market economy is one where - Property and resources are privately owned - There is freedom to produce and purchase goods and services - There is no central planning of the economy - Price mechanism and profits determine price of economic goods - Profit is the driving force, or motive of all firms Thus it is evident that there are many privately owned firms that provide the economic goods in market economies.