According to Max Weber, on what basis classes and status groups are differentiated?

The correct option is Lifestyles.

To understand why this is the correct answer, we can look at Max Weber's classical sociological theory of stratification:
1. Multidimensional Stratification: Max Weber proposed that social stratification is multidimensional, consisting of three independent yet interrelated factors: Class (economic order), Status (social order), and Party (political power).
2. Classes (Economic Dimension): For Weber, classes are defined by their relationship to the market. A class consists of individuals who share similar "life chances" based on their economic interests, wealth, property ownership, and skills in the market economy.
3. Status Groups (Social Dimension): Unlike classes, status groups are defined by the social estimation of honor, prestige, or reputation. Weber argued that status groups are communities that express their social position not through production, but through consumption.
4. Lifestyles: The primary way status groups establish, maintain, and differentiate themselves from other groups is through their shared lifestyles (styles of life). This includes specific patterns of consumption, cultural tastes, manners, and habits. Therefore, while classes are distinguished by their economic positions in the market, status groups are differentiated and recognized by their distinct lifestyles.