Q.Distinguish between 'necessities' and 'luxuries' as types of wants, with one example each.

Wants are commonly graded by urgency into necessities, comforts and luxuries, with necessities being essential for survival/efficiency and luxuries being goods of superfluous, status-driven satisfaction.

Necessities are goods and services without which a person cannot survive, or cannot work efficiently. They are further divided into 'necessities for existence' (a bare minimum of food, clothing, shelter) and 'necessities for efficiency' (a nutritious diet, basic education, a bicycle to reach work) which keep a person fit to earn a living. Example: a plate of daily food.

Luxuries, by contrast, are goods whose consumption goes well beyond what is needed for survival or efficiency, often driven by status, fashion, or the desire for superfluous comfort. Their consumption is optional and highly income-elastic — as income rises, spending on luxuries rises much faster than spending on necessities. Example: a diamond-studded wristwatch.

The boundary between the two is not fixed: a good that is a luxury for a low-income household (a refrigerator, decades ago) can become a necessity as incomes and living standards rise generally — the classification is relative to time, place and income level, not absolute.

Treating the necessity/comfort/luxury classification as fixed and universal — it is relative to income, time period and social custom, so a rigid example list without acknowledging this loses marks.