Author Question: According to Max Weber, the Protestant world view that encouraged hard work and saving was crucial ... (Read 93 times)

littleanan · **on:** Jun 30, 2018

According to Max Weber, the Protestant world view that encouraged hard work and saving was crucial to industrialization and the development of capitalism. Which hypothesis is this view based on?

A) The geography hypothesis B) The location hypothesis
C) The institutions hypothesis D) The culture hypothesis

Question 2

What is meant by the term optimization? What do economists usually believe about how individuals optimize?

What will be an ideal response?

okolip · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

D

Answer to Question 2

Choosing the best option from a set of feasible alternatives is referred to as optimization. Whatever choice a person faces, economists believe that he or she is likely to try to choose optimally. Economists don't assume that people always successfully choose the best feasible option, but that people try to do so and usually do a good job with whatever potentially limited information they have. This doesn't mean that people are always perfect calculators. Instead, economists believe that people's behavior is only approximated by optimization. In other words, they believe that an agent's actual choice will sometimes differ from that person's optimal choice.