People's interactions with each other in market and non-market setting are governed by ________.

Question

Quizplus · Accepted Answer

Institutions refer to the formal and informal rules, norms, and practices that guide human behavior. In market and non-market settings, institutions play a key role in shaping people's interactions with each other by providing a framework for economic and social exchange. While laws and history can influence institutions, they are not the determinants of people's behavior in the same way that institutions are. Economics, while a useful analytical tool for understanding market behavior, does not account for the many social and cultural factors that shape human interactions in non-market settings.

People's Interactions with Each Other in Market and Non-Market Setting