The substantivist approach in economics differs from the formalist view by __________.

Question

Quizplus · Accepted Answer

The substantivist approach in economics argues that the ways of allocating goods and services in small-scale societies, such as hunter-gatherer or tribal societies, are fundamentally different from those in large-scale Western economic systems. It suggests that economic behavior is embedded in social and cultural context, and not solely driven by rational self-interest. Therefore, it differs from the formalist view, which assumes that economic behavior is universal and driven by individual maximization of utility or profit. Hence, options A, B, and D are incorrect.

The Substantivist Approach in Economics Differs from the Formalist View