Final answer:
The statement is true; modes of livelihood, like industrialization during the market revolution, significantly affect the formation of social groups, leading to the development of social classes based on factors such as occupation, ethnicity, and religion.
Step-by-step explanation:
The statement that modes of livelihood affect the formation of social groups is True. Different modes of subsistence such as gathering-hunting, pastoralism, and agriculture can influence the structure of a society and its social groups. Historically, the introduction of industrialism brought about a shift towards social classes based on occupation, challenging extended-family structures, and incorporating factors like ethnic and religious identities.
For instance, the market revolution in the United States is a significant example of economic and social changes influencing social structures. This period saw increased urbanization, changes in production methods, and shifts in the way people lived and worked, leading to the development of distinctive social classes and groups. Another example is the temperance movement, which arose due to new social conditions, such as the rapid urbanization and immigration that accompanied industrialization.