(a) In economics, the needs and wants of man are collectively termed as “human wants” or simply “wants,” as needs are a subset of wants that are essential for survival, while wants encompass all desires.

(b) Four main needs of man include:

• Food (for nourishment and survival).
• Shelter (protection from elements).
• Clothing (for protection and modesty).
• Healthcare (to maintain physical well-being).

(c) A necessity is a good or service essential for basic survival and well-being, such as food, water, or basic housing, without which life would be severely compromised. In contrast, a luxury is a good or service that enhances comfort or pleasure but is not essential for survival, such as high-end jewelry, luxury cars, or exotic vacations; it is often associated with higher income levels and can be forgone without affecting basic living standards.

(d) The one main factor that determines price is the interaction of supply and demand in the market.

(e) An economic system is a structured way in which a society organizes the production, distribution, and consumption of goods and services to satisfy human wants, involving decisions on what to produce, how to produce, and for whom to produce, often classified into types like capitalism, socialism, or mixed economies.

In practical banking context in Ghana, understanding these concepts helps bankers assess customer loan applications for essentials versus luxuries, ensuring compliance with BoG’s prudent lending guidelines under Act 930, where financing necessities like housing may receive favorable terms compared to luxuries.