The Substantivist Approach in Economics Differs from the Formalist View

question 27

Multiple Choice

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

• A) suggesting that money is the prime mover in all economic systems
• B) focusing on supply and demand economics as opposed to price fixing
• C) maintaining that the ways of allocating goods and services in small-scale societies differ fundamentally from those of large-scale Western economic systems
• D) assuming that all peoples act to maximize their individual gains

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Definitions:

Equal Dignities Rule

A legal principle stating that agents appointed to perform tasks that must be in writing, such as real estate transactions, also must have their authority granted in writing.

Mortgage

A loan secured by the collateral of specified real estate property that the borrower is obliged to pay back with a predetermined set of payments.

Assignment

The transfer of rights, property, or responsibilities from one party to another.

Time is of the Essence

A contractual clause indicating that the timing of certain actions or tasks is critical and failure to perform them on time constitutes a breach of contract.