What a Veblen good is — a luxury good where higher price increases desirability

What a Giffen good is — a good where demand increases as price increases (very rare)

Giffen good: Increased price leads to higher demand due to inferior necessity

What the endowment effect causes — you value what you own more than what you don't

The endowment effect leads to overvaluation of owned items compared to identical alternatives

What the labor theory of value claims — the value of a good equals the labor required to produce it

Labor theory posits: Good's value equals production labor

What the three forms of market efficiency are — weak, semi-strong, strong

Weak: Prices reflect all publicly available information; Semi-strong: Prices reflect all public and private information; Strong: Prices reflect all information, including private

What the efficient market hypothesis claims — prices reflect all available information

Efficient Market Hypothesis: Prices incorporate all publicly available information

What Buffett means by a company's moat — sustainable competitive advantage

Buffett's "moat" refers to a company's sustainable competitive advantage protecting it from rivals