Final answer:
The theory that power is based on wealth is exemplified by conflict theory and insights from G. William Domhoff and C. Wright Mills, who argue the wealthy elite control societal structures and maintain their status through political influence.
Step-by-step explanation:
The theory that power is based on wealth is primarily represented by conflict theory, particularly in the works of sociologists like G. William Domhoff and C. Wright Mills. In his book Who Rules America?, Domhoff suggests that wealth is necessary to exert significant influence over social and political systems, reinforcing the idea that power is concentrated in the hands of the wealthy elite who use it to maintain their status and control the economy. Meanwhile, Mills' concept of the power elite in his work The Power Elite outlines how a small group of powerful people, who are often interconnected through common social patterns and institutions, control much of society's functions, including government action that sustains their wealth.
Within this framework, wealth translates into power because those who possess it can shape societal structures, policies, and outcomes to favor their interests, often at the expense of broader populations. This is evident historically and in contemporary society, as well as in classical societal structures, where economic ideologies and ideas of meritocracy often justify existing disparities in wealth and power distribution.