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

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 anchoring does in investing — the purchase price biases your sell decision

Anchoring bias causes investors to base sell decisions on initial purchase price rather than current market value

What supply and demand equilibrium is — the price where quantity supplied equals quantity demanded

Price at which market clears, Qs = Qd

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 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 is the principle of Pareto efficiency in welfare economics and how does it relate to the concept of market equilibrium?

Pareto efficiency ensures no welfare improvement without disadvantaging others, aligning with market equilibrium where no trades can make someone better off without harming others