Statement (1) is correct because private ownership of the means of production is a fundamental feature of a capitalist economy. Statement (2) is incorrect because production is not sold entirely to the government; it is primarily produced for sale in the market. Statement (3) is correct because labour services are purchased in exchange for wages. Statement (4) is correct because capitalist enterprises produce goods and services mainly for sale in the market rather than for self-consumption. Therefore, Statements (1), (3) and (4) are correct, making Option C the correct answer.

The Assertion is false because peasant economies generally produce mainly for self-consumption rather than for sale in the market. The Reason is also false because capitalist enterprises produce primarily for sale in the market and not for the entrepreneur's own consumption. Therefore, both the Assertion and the Reason are false, making Option A the correct answer.

The entrepreneur first earns total revenue by selling the output (1). From this revenue, payments are made to the owners of land in the form of rent (2) and to labour in the form of wages (3). After meeting all factor payments, the remaining amount becomes profit (4). Therefore, the correct sequence is (1) → (2) → (3) → (4).

In a capitalist economy, firms hire workers from the labour market to perform production activities. These workers sell their labour services in return for wages. Since labour is bought and sold at a predetermined wage rate, it is referred to as wage labour. Therefore, Option B is the correct answer.

A capitalist firm requires capital to purchase machinery, buildings, raw materials and other productive resources. This capital may be supplied by the entrepreneur from personal resources or borrowed from financial institutions or lenders. Therefore, Option C is the correct answer.

The entrepreneur receives profit only after paying rent, wages and interest. If total revenue is less than these factor payments, the remaining amount becomes negative, resulting in a loss. Since entrepreneurs bear business risk, they are responsible for this negative profit. Therefore, Option D is the correct answer.

(1) → (a): Workers receive wages for providing labour. (2) → (b): Entrepreneurs organize production and aim to maximize profit. (3) → (c): Landlords receive rent for allowing the use of land. (4) → (d): Capital lenders earn interest on the capital they provide. Therefore, the correct matching is (1)-a, (2)-b, (3)-c and (4)-d, making Option A the correct answer.

Statement (1) is false because rent is the payment made for the use of land, not capital. Statement (2) is true because interest is the return earned for supplying capital. Statement (3) is true because rent and interest are paid by the firm from the revenue earned through the sale of output. Statement (4) is true because wages are paid to labour for providing human effort in the production process. Therefore, Statements (2), (3) and (4) are correct, making Option B the correct answer.

Profit is the income received by the entrepreneur after making payments to all the other factors of production. These include rent for land, wages for labour and interest for capital. The remaining amount after these payments constitutes profit. Therefore, Option C is the correct answer.

The Assertion is true because investment expenditure increases the productive capacity of a firm by adding to its stock of capital goods. The Reason is also true because investment expenditure involves purchasing new machinery or constructing new factories, often using retained profits. These investments directly expand the firm's production capacity. Therefore, both the Assertion and the Reason are true, and the Reason correctly explains the Assertion, making Option D the correct answer.

A capitalist firm hires wage labour and produces goods and services primarily for sale in the market with the objective of earning profit. In contrast, peasant farms in many underdeveloped countries mainly rely on family labour and produce largely for self-consumption rather than for the market. Therefore, Option A is the correct answer.

Entrepreneurs face uncertainty regarding the market price and quantity of goods sold, making revenue variable. However, payments such as wages, rent and interest are generally contractual commitments. Therefore, profit depends on the difference between uncertain market revenue and relatively fixed factor payments, making Option B the correct answer.

Initially, the classical school believed that markets would automatically achieve equilibrium and full employment (1). The Great Depression exposed the limitations of this belief by creating widespread unemployment and idle production (2). Keynes responded by advocating state intervention to stabilize the economy (3). This led governments to undertake broader responsibilities such as infrastructure development and social welfare measures (4). Therefore, the correct sequence is (1) → (2) → (3) → (4).

(1) → (a): The State imposes taxes, provides public infrastructure and performs welfare functions. (2) → (b): Firms organize factors of production and produce goods and services. (3) → (c): Households earn income, consume, save and pay taxes. (4) → (d): The external sector carries out exports and imports and facilitates international economic transactions. Therefore, the correct matching is (1)-a, (2)-b, (3)-c and (4)-d, making Option D the correct answer.

The Assertion is true because households generate the demand for final goods and services in the economy. The Reason is also true because households make consumption decisions and purchase goods produced by firms. These purchases create market demand, which directly explains why households are the ultimate drivers of demand. Therefore, both the Assertion and the Reason are true, and the Reason correctly explains the Assertion, making Option A the correct answer.

Statement (1) is correct because households earn wages by supplying labour to firms. Statement (2) is correct because household members employed in government departments receive salaries. Statement (3) is correct because households may also earn profit, rent and interest by owning firms, land and capital. Statement (4) is correct because all these incomes arise from supplying factors of production to the economy. Therefore, all four statements are correct, making Option B the correct answer.

Goods and services produced within the domestic economy and sold to buyers in other countries are known as exports. Exports are an important component of the external sector and contribute to national income and foreign exchange earnings. Therefore, Option C is the correct answer.

Imports are goods and services purchased from the rest of the world for domestic use. A higher volume of imports indicates greater reliance on goods and services produced in foreign countries. Therefore, Option D is the correct answer.

According to the passage, macroeconomics focuses on aggregate economic variables and the interlinkages among different sectors of the economy. Unlike microeconomics, which studies individual sectors while assuming the rest of the economy remains unchanged, macroeconomics analyzes how sectors interact with one another. Therefore, Option A is the correct answer.

The passage explicitly states that macroeconomics views the economy as consisting of four major sectors: households, firms, government and the external sector. These sectors interact with one another and collectively determine the functioning of the economy. Therefore, Option B is the correct answer.