Economic Bubbles

Today’s lesson will examine economic bubbles. An economic bubble is when something costs much more than it should. For example, a house or a flower. People buy it because they think it will keep getting more expensive. But then the price goes down very fast and they lose money. This can happen with many things, like stocks, land, or art. Bubbles are bad for the economy because they make people waste resources and take risks. In this lesson, you will learn more about what causes bubbles and how to avoid them.