Set theory provides a framework for relational databases. A relational database stores data in tables and defines relationships between tables based on set theory operations like union and intersection. The document discusses using set theory to query a marketing database, defining two sets - Set A with company names from online ads and Set B with names of online retailers purchased from. It prompts the reader to conduct a browsing trial to populate Set A and B, then answer questions about the number of elements and first/last elements of each set to test understanding of relating database tables.