1(a) How do wants differ from desires? How do wants arise and grow? (In 60-80 words)

(b)Explain any five factors which influence classification of wants into necessities, comforts and luxuries. (In 60-80 words)

(c) How are production, consumption and investment inter-related? (In 60-80 words)

2(a) State any five main characteristics of labor as a factor of production.(in 60-80 words)

(b) How are the private sector production units classified on the basis of owners? Give one example of each category.(in 60-80 words)

(c) Distinguish between departmental enterprises and non-departmental enterprises. Give one example(in 69-80 words)

3. What is meant by increase in production? What is there a need for increasing production? (in 250 words)
4. What is the role of insurance in distribution of goods and services? (in 250 words)

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1(a) Wants differ from desires in that wants are the specific forms that desires take. Desires are the underlying feelings or cravings that drive human behavior, while wants are the specific objects, experiences, or outcomes that individuals seek to fulfill those desires. Wants arise and grow through several factors, including social influence, personal experiences, and the influence of advertising and marketing. Wants can also be influenced by cultural and societal norms, as well as individual values and priorities. As individuals fulfill their wants, new wants may emerge based on changing desires and evolving preferences.

(b) The classification of wants into necessities, comforts, and luxuries is influenced by several factors. Firstly, the basic needs for survival and well-being, such as food, shelter, and clothing, are considered necessities. Comforts refer to wants that enhance the quality of life, such as a comfortable home or leisure activities. Luxuries are non-essential wants that provide indulgence and extravagance, such as luxury cars or designer clothes. Five factors that influence this classification include income levels, societal norms and cultural influences, personal preferences, technological advancements, and economic conditions. These factors determine the affordability, availability, and desirability of different wants, thus influencing their classification into different categories.

(c) Production, consumption, and investment are interconnected in the economic system. Production refers to the process of creating goods and services, which are then consumed by individuals or other businesses. Consumption is the utilization or use of goods and services by individuals or households for their personal satisfaction. Investment involves allocating resources towards the creation or acquisition of productive assets with the aim of generating future income or returns.

These three concepts are interrelated as follows: production leads to the availability of goods and services for consumption, and consumption drives the demand for production. Investment plays a crucial role in both production and consumption. It facilitates the expansion of production capacity, technological advancements, and the creation of new goods and services. Increased production leads to higher levels of consumption, which in turn creates an incentive for further investment. Thus, production, consumption, and investment are interdependent and contribute to the overall economic growth and development of a society.