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What does Substantivist Economic Theory argue?
The substantivist economic theory argues that economics has two meanings. The first meaning is that individuals make rational decisions and logical actions based on choices between limited resources. The second meaning tends to focus more on how humans live interactively with social environments rather than how they make rational decisions or conditions of scarcity. It argues that human's strategy of livelihood is based on adaptation to various material or environmental conditions, which does not involve the maximization of utility.