Final answer:
The economy is the social institution that oversees how a society produces, distributes, and consumes resources, with various systems like market economies or socialism shaping this process.
Step-by-step explanation:
The social institution within a state that determines how a society produces, distributes, and consumes goods and services is known as the economy. The economy encompasses various systems through which resources are managed, including the production, distribution, and consumption of goods and services. Different economic structures, such as global assembly lines or state-run systems, exemplify how economies can organize production and exchange. In market economies, for instance, demand and supply are the key mechanisms determining what is produced, how it is produced, and for whom it is produced. Additionally, some systems like socialism prioritize the equal distribution of work and wealth, with the state regulating property, production, and distribution to ensure fairness.