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I wrote "I am fine", as an answer. Why is a bad answer? I mean, "fine" and "good" are the same meaning, I supose.
Not in German. Ich bin gut means that you are good in something (cardgame, sport, etc.) or less frequently used that you are a good person.
For answers to How are you? see sarbeahr thread
I don't think so. Maybe Northern Germany is different, but this sentence translates with the meaning that "I am a good person" not "I am doing well." If you want to say I am well, "Mir geht es gut." would be a correct sentence.
As Jimmijify said, you would reply with "Mir geht's gut" or "Mir geht es gut" to say you are well if someone asked how you are; "Wie geht es dir?"
Mir geht es gut means "To me goes it good" or in a less literal sense, "It's going good for me"
yes, that is what my German teacher told me. Same with "I am hot" doesn't mean that your body feels warm. Ich bin gut describes more your personality.
Ha, yeah. It's funny the way I was taught. For my first year of German class, we were always taught that "Ich bin gut" means "I am good" (not in the sense of "I am a good person"). Then I got to year 2 and suddenly they were telling us that "Ich bin gut" means something different than we were intending and told us the correct term for "I am good" (in terms of how you feel) is "Mir ist gut" oder "Es geht mir gut". But they never told us what "Ich bin gut" translated to, but they told us what others we should use "mir" with, telling what it meant if we used "ich" (let me tell you it was not good). Now I am in year 5 and had a fear of saying "Ich bin gut" by accident for fear it might mean something bad (being that I never learned what it really meant).
I thought the phrase "Ich bin gut" translate to "I am good (in bed)" and that the "in bed" part is very much implied