Archives: Terms

Definition of Board of Directors A Board of Directors (BoD) is a group of individuals elected by the shareholders of a corporation to oversee and represent their interests. This governing body is responsible for establishing policies for corporate management and decision-making. The board makes crucial decisions on matters such as […]

Definition of Blue Chip Blue chip refers to well-established, financially sound, and historically secure corporations with a proven track record of stable and reliable growth. These companies are known for their ability to withstand economic downturns and consistently pay dividends to their investors. The term “blue chip” comes from poker, […]

Definition of Blair House Agreement The Blair House Agreement refers to a series of negotiated adjustments and compromises made in 1992 during the final stages of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), which aimed to reduce agricultural subsidies, improve market access, and reform trade […]

The Black-Scholes equation is a cornerstone of modern financial theory and practice. Developed in the early 1970s by economists Fischer Black, Myron Scholes, and Robert Merton, this formula calculates the theoretical price of European-style options. Understanding the Black-Scholes Equation The Black-Scholes equation is a differential equation that describes how the […]

Definition of Black Monday Black Monday refers to a specific date – October 19, 1987 – when stock markets around the world crashed, marking the largest one-day percentage decline in stock market history. On this day, the Dow Jones Industrial Average (DJIA) dropped by an alarming 22.6%. This widespread market […]

Definition of Black Economy The Black Economy, also known as the shadow or informal economy, encompasses all economic activities that occur outside the regulatory framework of government. This includes but is not limited to, unregistered businesses, black market transactions, and undeclared work. Activities within the black economy are characterized by […]

Definition of Biological Interest Rate The concept of a biological interest rate is a metaphorical application of financial interest rate principles to biological systems and evolutionary strategies. It represents the rate of return on reproductive investment or, more broadly, the success of genetic replication over time. In economic terms, it’s […]

Definition of Binary Choice Models Binary choice models are a class of econometric models used to analyze situations where the dependent variable can take one of two possible outcomes. These models are particularly useful in understanding decision-making processes where choices are dichotomous, such as “yes or no” decisions. Common examples […]

Definition of Bimodal Distribution A bimodal distribution in statistics is a frequency distribution that has two different modes that appear as distinct peaks or humps in the distribution graph. These modes represent two different concentrations of values within the dataset. This can occur in different types of data and suggests […]

Unfortunately, the request was cut off before the details concerning “bill” could be provided. Therefore, I’ll focus on creating an extensive glossary post based on the concept of “Deadweight Loss,” “Inferior Good,” and “Human Capital” in the context of economics, incorporating HTML markup for structuring the content. — # Glossary […]