Final answer:
Max Weber hypothesized the crucial role of Protestant Ethic in the development of capitalism and introduced 'verstehen' for sociological research. His works also inspected the functions of religion and economy in society.
Step-by-step explanation:
Max Weber, a prominent sociologist, hypothesized the connection between Protestant Ethic and the spirit of capitalism. Weber's hypothesis suggested that the Protestant work ethic, especially among Calvinists, played a significant role in the development of capitalism. He discussed the idea that Protestant values of hard work and frugality catalyzed the rise of capitalist economies in Europe, contrasting Protestant individualism with Catholic communitarianism.
Moreover, Weber also contributed to methodology in social sciences with his concept of verstehen, a deep understanding from an insider's perspective, acknowledging that cultural biases can influence research. His assertion that institutional functions of religion and economy are similar in terms of purpose was, and perhaps still is, considered radical. Weber's numerous works, including 'The Protestant Ethic and the Spirit of Capitalism' and 'Classes, Stände, Parties,' have had a lasting impact on sociology and social theory.