Relation Goverment, Goods, Market, and Money


A government is the system by which a state or community is controlled. In the case of this broad associative definition, government normally consists of legislators, administrators, and arbitrators. Government is the means by which state policy is enforced, as well as the mechanism for determining the policy of the state. Forms of government, or forms of state governance, refers to the set of political systems and institutions that make up the organisation of a specific government.[1] The goverment must find the revenues to pay for its public goods and fpr its income redistribution program. Such as revenues come from taxes levied on personal and corporate incomes, on wages on sales of consumer goods. Goverments are generally more concerned with negative externalities than positive ones. As our society has become  more densely populated and as the production of energy,chemicals, and other materials.[2]
Goods are the term good does not include item bought for personal use, item  bought at an auction or foreclouse sale,aircraft or oceangoing vessels. Goods that are scarce(are in limited supply in relation to demand) are called economic goods, where as those whose supply is unlimited  and that require neither payment not effort to acquire,( such as air) are called free goods. The goods are ordinary good, normal good, superrior good and necessary good. The fungitional of goods is we should be sure  that we choose a reliable company to handle the job with damages.[3]
Money  is the universally acceptable medium of axchange including primarily currentcy and checking deposist. It is used to pay for everything from apple tarts to zebra skins. By accepting money, people and nations can specialize in producing  a few goods and can then trade them for others without money, we would waste much time negotiating and bartering. Money is any item or verifiable record that is generally accept as payment for goods and services and repayment of debt in a particular country or socio economic context, or easily converted to such a form. The main functions of money are distinguished as a medium of exchange, a unit of account, a store of value and a standard of deferred payments.[4]
A market can be called the 'available market'  that of all the people in the area. Within the available market, there is the 'market minimum' or the market size, which will buy goods without any marketing effort. This is the lowest sale that a company could get without any action on its part. In today's world, this level is sinking ever lower. There is also the 'market potential', which is the maximum market size that will buy goods when subjected to the greatest marketing action that a company can do. Beyond this market potential, the costs outweigh the gains. The market potential is therefore the upper limit for a marketplace and sales. A market is a mechanism through which buyers and sellers interact to determine prices and exchange goods and services. In a market system,everything has a price, which is the value of the good in terms of money. A market economy is an elaborate mechanism for coordinating people, activities, and businesses through a system of prices and markets.[5]
Goverment control the money supply throught their Central Bank. But like other lubricants, money can get overheated and damage the economics engine. It can grow out of control and cause a hyperinflation, in which prices increase very rapidly. Money is the medium of the exchange. Proper man agement of the money supply is one of the major issues for goverment macroeconomic policy in all countries. Althought the market mechanism is an admirable way of producing and all ocating goods. The goverment may step in to correct these failures. Market fail to provide an efficient of resources in the presence of imperfect competition, to combat these condition goverment regulate businesses or put legal antitrust constrauns on business behavior. Goverment may decide to step in and regilate these spillovers or provide for public goods.[6]


[1] http :// "government.". Oxford Dictionaries e. ( Oxford University Press. Retrieved 7 December 2014), p. 54
[2] Paul A. Samuel, Economics eighteen edition,( United States of America : Mc-Graw Hill, 2005), p.37

[3] Ibid, 39
[4] http ://www.money – Wikipedia/index.php?option=com_content&view=article&id=23
[5] Paul A. Samuel, Economics eighteen edition,( United States of America : Mc-Graw Hill, 2005), p.30
[6] Ibid, 43

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