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

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

A Veblen good is a luxury item whose demand increases as its price rises, due to perceived exclusivity

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

Efficient Market Hypothesis: Prices incorporate all publicly available information

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

Price at which market clears, Qs = Qd

What Buffett looks for in management — integrity, intelligence, and energy

Buffett values management integrity, intelligence, and energy for long-term success

What time value of money means — $100 today is worth more than $100 in the future

Present value exceeds future value due to potential earning capacity