Asymmetric information, different information between two parties, leads to the following - adverse selection, moral hazards, and market failure.
The principle-agent problem (agency dilemma) exists when conflicts of interest arise between a principal and an agent in a business setting.
Public choice may not lead to an economically efficient outcomes due to who votes, why they vote, and in what system they vote.
Behavioral economics is the study of the effects of social, cognitive, and emotional facts on the financial decisions of individuals and institutions.
Government failure occurs when possible interventions are not analyzed before action is taken regarding market inadequacies.