Final answer:
The economy emerged as a distinct social institution during the agrarian societies stage of technological development, following the Agricultural Revolution which allowed for the creation of surplus goods and trade.
Step-by-step explanation:
The economy first became a distinct social institution during the agrarian societies stage of technological development. Prior to this, during the hunter-gatherer stage, there was not a true economy because groups did not typically trade with one another due to the scarcity of goods. The Agricultural Revolution introduced the concept of a structured economic system, as people began to cultivate crops and domesticate animals, which led to permanent settlements, the accumulation of surplus goods, and the eventual rise of trade and commerce.
Technological Development and Economy
Societies evolve in complexity with their level of technological advancement. Hunter-gatherers relied on nature's bounty and moved frequently. With the advent of agriculture, societies grew settled and increased their capacity to produce and accumulate goods. This stability facilitated the creation of permanent tools and the birth of trade, marking the beginning of recognizable economic systems.
In answering the question, the horticultural societies were the first to have permanent residents, as indicated by choice c. However, for a fully developed economy, agrarian societies are the correct answer, where the institution of economy emerged distinctly.