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OPEN MARKET OPERATIONS: The Federal Reserve System's buying and selling of government securities in an effort to alter bank reserves and subsequently the nation's money supply. These actions, under the direction of the Federal Open Market Committee, are the Fed's number one, most effective, most often used tool of monetary policy. If, for example, the Fed wants to increase the money supply (termed easy money) it buy's government securities. If the Fed chooses to reduce the money supply (called tight money) it sells some government securities.
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                           GOOD: A physical, tangible item or product used to satisfy wants and needs. A good is produced using society's resources and represents a fundamental aspect of the economy. Limited resources are used to produced the goods that satisfy unlimited wants and needs in an ongoing effort to address the problem of scarcity. As used in economics, the word "good" undoubtedly can be traced to the more common usage--something that is positive or beneficial. In that a "good" provides satisfaction and in so doing makes the consumer better off, it is a "good" thing to have. In fact, an item that has a negative impact on satisfaction, such as pollution or crime, is often referred to as a "bad."Goods and ServicesTangible goods should be contrasted with a related concept, intangible services. Services are activities that provide direct satisfaction of wants and needs without the production of a tangible item. In that wants and needs are satisfied with either tangible goods or intangible services, the phrase goods and services is commonly used to comprehensively capture all production in the economy. As such, terms like gross domestic product are defined using the phrase the "...market value of all goods and services."Important ModifiersAs a fundamental concept of economic activity, the term good serves in a number of contexts with a number of different adjective modifiers. Here is a short list for your consideration:- Economic Good: A tangible item produced using scarce, economic resources. This means virtually the same as the unmodified term "good" but adding the adjective "economic" serves to signify that the good has limited availability relative to desired use and is thus subject to economic analysis.
- Scarce Good: A synonymous term for economic good. The adjective "scarce" emphasizes that the good has limited availability relative to desired use, reflecting the pervasive problem of scarcity.
- Free Good: A good plentiful enough to satisfy all desired uses, often with some left over. Unlike scarce or economic goods that are traded through markets, free goods are not traded through markets and usually have a zero price.
- Final Good: A good that is available for purchase by the ultimate or intended user with no plans for further transformation or as an input in the production of other goods for resale.
- Intermediate Good: A good that is used as an input in the production of a final good.
- Normal Good: A good in which an increase in income causes an increase in market demand.
- Inferior Good: A good in which an increase in income causes a decrease in market demand.
- Private Good: A good that can be exchanged through markets because it is rival in consumption and nonpayers can be excluded from gaining control, which makes market exchanges virtually impossible.
- Public Good: A good that is generally provided by government because it is nonrival in consumption and nonpayers cannot be excluded from gaining control.
- Near-Public Good: A good that is generally provided or at least regulated by government because it is nonrival in consumption, even though nonpayers can be excluded from gaining control.
- Common-Property Good: A good that is generally provided or at least regulated by government because even though it is rival in consumption, nonpayers cannot be excluded from gaining control.
Although this list is lengthy, it is but a tip of the iceberg. A more complete list would also include capital good, consumption good, superior good, luxury good, Giffen good, durable good, nondurable good, and... well... a whole lot more.
Recommended Citation:GOOD, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2019. [Accessed: October 18, 2019].
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BLACK DISMALAPOD
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Today, you are likely to spend a great deal of time at a crowded estate auction trying to buy either a birthday greeting card for your uncle or a T-shirt commemorating the 2000 Presidential election. Be on the lookout for neighborhood pets, especially belligerent parrots.
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The first paper currency used in North America was pasteboard playing cards "temporarily" authorized as money by the colonial governor of French Canada, awaiting "real money" from France.
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"Executives who get there and stay suggest solutions when they present the problems. " -- Malcolm Forbes, business executive
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