Archives: Terms

Definition of a Bundle of Goods A Bundle of Goods refers to a combination of different goods or services that are sold together as a single package. This concept is widely used in consumer economics and marketing to understand consumer preferences and how different products complement or substitute each other […]

Definition of Bundesbank The Bundesbank, formally known as the Deutsche Bundesbank, is the central bank of the Federal Republic of Germany and a key player in the European System of Central Banks (ESCB). Founded in 1957, its primary responsibility is to ensure price stability within the country, along with other […]

Definition of Built-in Stabilizers Built-in stabilizers, also known as automatic stabilizers, are economic policies and programs designed to automatically mitigate the fluctuations of an economy’s cycle without the need for explicit intervention by policymakers. These mechanisms work to stabilize a nation’s income, consumption, and investment by reducing the magnitude of […]

Definition of Building Society A building society is a financial institution owned by its members as a mutual organization. Building societies offer banking and related financial services, especially savings and mortgage lending. These societies are similar to banks but differ mainly in their ownership structure; while banks are typically owned […]

Definition of Building and Loan Association A Building and Loan Association is a financial institution that specializes in accepting savings deposits and making mortgage loans. These organizations, traditionally mutual organizations, are formed on a cooperative basis and operate for the benefit of their members. Members of a Building and Loan […]

Definition of Buffer Stock Buffer stock is a system of storing goods or commodities by a government or organization to stabilize the market price under conditions of fluctuation in supply and demand. The primary aim of maintaining a buffer stock is to minimize the impact of sudden changes in the […]

Definition of Budget Year A budget year, often referred to as a fiscal year, is the 12-month period used by governments and businesses for accounting and budgeting purposes. It is the timeframe over which revenues are forecasted, and expenses are planned. Importantly, the budget year serves as the principal period […]

Definition of Budget Line A budget line, also known as a budget constraint, represents all the possible combinations of two goods or services that a consumer can purchase given their income level and the prices of those goods or services. It’s a graphical representation that shows the trade-off between two […]

Definition of Bubble A bubble in the context of economics refers to a phenomenon where the price of an asset in a market significantly exceeds its intrinsic value, driven by exuberant market behavior. This pricing discrepancy is not supported by the fundamentals of the asset but is instead fueled by […]

Definition of Brownian Motion Brownian motion, named after the botanist Robert Brown, refers to the random movement of particles suspended in a fluid (a liquid or a gas) as they collide with the molecules of the fluid. This phenomenon is observable under a microscope and serves as a foundational concept […]