An economic bubble refers to when prices of assets and securities rise way above their true or fundamental value.

Question

Quizplus · Accepted Answer

An economic bubble occurs when the prices of assets or securities rise excessively, often fueled by speculation or irrational exuberance, beyond their intrinsic or fundamental value. This eventually leads to a market correction or crash as it becomes unsustainable. Examples of economic bubbles in the past include the dot-com bubble and the housing market bubble.

An Economic Bubble Refers to When Prices of Assets and Securities