Final answer:
The Industrial Revolution was the period where increased productivity led to new political and social institutions, marked by technological advances, urbanization, and the rise of new social classes.
Step-by-step explanation:
The society in which increased productivity gave rise to new political and social institutions is best exemplified by the Industrial Revolution. This period was marked by a dramatic increase in technology and productivity which led to the modernization of the world. During the Industrial Revolution, urban centers grew as workers moved to factories, and this in turn fostered the rise of new social classes and political dynamics.
Existing societies evolved as the population grew, per capita income increased significantly, and social mobility became more pronounced. The transformation also led to significant social changes, reflected in new philosophies, political debates, and the spread of ideas.
Ultimately, the Industrial Revolution (option C) was the pivotal moment in history where increased productivity catalyzed the development of new social and political institutions. As factories and urban life became the norm, political decisions, and social structures adapted to the new economic realities, shaping the modern Western world profoundly.