The Assertion is false because tribal societies are not capitalist economies. Capitalism is characterized by private ownership of the means of production and production for the market. The Reason is true because, in many tribal societies, land belongs collectively to the tribe rather than to private individuals. Hence, private ownership, which is a key feature of capitalism, is absent. Therefore, Option B is the correct answer.

Statement (1) is correct because peasant families often produce mainly for their own consumption rather than for sale in the market. Statement (2) is incorrect because peasant families generally depend on family labour rather than hired wage labour. Statement (3) is correct because family members themselves contribute most of the labour in peasant production. Statement (4) is correct because production in peasant economies is often aimed at meeting family needs rather than maximizing profits. Therefore, Statements (1), (3) and (4) are correct, making Option C the correct answer.

The entrepreneur first acquires the right to use land (1). The land is then utilized in the production process (2). After production, the output is sold in the market to generate revenue (3). From the revenue earned, rent is paid to the landowner as payment for the use of land (4). Therefore, the correct sequence is (1) → (2) → (3) → (4).

In a capitalist economy, labour is hired from the labour market. Workers provide their physical and mental effort in return for wages, which represent the price paid for labour services. Therefore, Option A is the correct answer.

(1) → (c): Land is the fixed natural resource used in production. (2) → (b): Capital is either supplied by the entrepreneur or borrowed to run the enterprise. (3) → (a): Labour is hired from the market and paid wages. (4) → (d): The entrepreneur organizes production and makes major business decisions. Therefore, the correct matching is (1)-c, (2)-b, (3)-a and (4)-d, making Option B the correct answer.

After acquiring land, labour and capital, the entrepreneur organizes production and sells the output in the market. The objective is to earn profit, which is the residual income left after paying rent, wages and interest. Therefore, Option C is the correct answer.

The Assertion is false because the wage rate is an essential feature of a capitalist economy. Labour services are bought and sold in the labour market. The Reason is true because workers sell their labour services to firms, and the payment received for these services is called the wage rate. Therefore, Option D is the correct answer.

Profit is calculated as: Profit = Revenue − (Wages + Rent + Interest) Given, Revenue = 1000 units Wages = 200 units Profit = 300 units Therefore, Rent + Interest = 1000 − (200 + 300) = 500 units. Hence, Option A is the correct answer.

Profit is the income earned by the entrepreneur after paying all other factor payments, namely wages to labour, rent to landowners and interest to capital providers. It represents the residual share of total revenue and serves as the entrepreneur's reward for organizing production and bearing business risk. Therefore, Option B is the correct answer.

When entrepreneurs use their profits to purchase new machinery, construct factories or expand existing production facilities, the expenditure is known as investment expenditure. Such spending increases the productive capacity of the economy by adding to the stock of capital goods. Therefore, Option C is the correct answer.

Production units that operate on capitalist principles employ land, labour and capital to produce goods and services for sale in the market with the objective of earning profits. Such production units are known as firms. Therefore, Option D is the correct answer.

Statement (1) is correct because entrepreneurs face uncertainty regarding the selling price of their products. Statement (2) is correct because total revenue may not be sufficient to cover wages, rent and interest. Statement (3) is correct because market demand for goods may fluctuate. Statement (4) is correct because entrepreneurs receive profit only after meeting all factor payments, and this profit is uncertain. Therefore, all four statements are correct, making Option A the correct answer.

The Assertion is false because the government performs several important functions even in a capitalist economy. It frames laws, imposes taxes, provides public infrastructure and promotes social welfare. The Reason is true because building infrastructure and providing health services are among the important economic functions performed by the State. Therefore, Option B is the correct answer.

The government first imposes taxes on households and firms (2). These taxes are then collected as government revenue (4). The collected funds are used to build public infrastructure (1). Finally, the economy benefits from improved infrastructure through better transportation, communication and other public facilities (3). Therefore, the correct sequence is (2) → (4) → (1) → (3).

Households are the primary consumers in an economy. Their demand for goods and services enables firms to sell their output and earn revenue. Without household consumption demand, firms would find it difficult to sustain production and business operations. Therefore, Option D is the correct answer.

(1) → (a): Leasing land provides the owner with rent. (2) → (b): Lending capital earns interest. (3) → (c): Individuals working in firms receive wages for their labour. (4) → (d): Owners of firms earn profit after meeting all production expenses. Therefore, the correct matching is (1)-a, (2)-b, (3)-c and (4)-d, making Option A the correct answer.

When goods and services produced within the domestic economy are sold to buyers in foreign countries, the transaction is called an export. Exports form an important component of the external sector and contribute to the country's foreign exchange earnings. Therefore, Option B is the correct answer.

The Assertion is false because countries normally engage in both exports and imports as part of international trade. The Reason is true because purchasing goods from the rest of the world is known as imports. Therefore, Option D is the correct answer.

The passage explains that the external sector involves not only exports and imports of goods but also the movement of capital between countries. When capital flows from foreign countries into the domestic economy, it forms part of the country's interaction with the external sector. Therefore, Option D is the correct answer.

According to the passage, interaction between the domestic economy and the rest of the world is not confined to exports and imports. Capital also moves across countries in the form of inflows and outflows. These cross-border capital movements strengthen the economic relationship between countries. Therefore, Option A is the correct answer.