Archives: Terms

Definition of Bilateral Monopoly A bilateral monopoly exists when a market has only one supplier, known as a monopolist, and one buyer, known as a monopsonist. This unique market structure creates a scenario where negotiation and bargaining play a critical role in determining prices and output levels, as both the […]

Definition of Big Push The Big Push model is a concept in development economics which suggests that a certain minimum amount of investment is necessary to overcome the barriers to economic development in poor countries. This model argues that in order for a developing economy to achieve a self-sustaining growth, […]

Definition of Bid A bid is an offer made by an individual, organization, or entity to purchase a good, service, or asset. It specifically refers to the price at which someone is willing to buy, and it’s a term widely used in various markets, including stock exchanges, auctions, and commodity […]

Definition of the Beveridge Curve The Beveridge Curve represents the relationship between job vacancies and unemployment rates, typically displaying an inverse correlation. This curve is a graphical representation that illustrates how the number of job vacancies varies inversely with the level of unemployment within an economy. Essentially, when there are […]

Definition of Between-Groups Estimator A Between-Groups Estimator is a statistical method used to estimate the effect of a variable across different groups within a dataset. This tool is particularly useful in econometrics and statistics to analyze the impact of categorical variables on a certain outcome. By comparing means, variances, or […]

Definition of Beta Stocks Beta is a measure of a stock’s volatility in relation to the overall market. It is a key component in the Capital Asset Pricing Model (CAPM), which is used to calculate expected return on investment. A stock with a beta greater than 1 is considered more […]

Definition of Beta Coefficient The beta coefficient measures the volatility or systematic risk of an investment relative to the overall market. The beta coefficient is a key concept in modern portfolio theory, indicating how much an investment’s price is expected to move compared to market movements. A beta of 1 […]

Definition of Best-Fit Line A best-fit line, also known as a line of best fit or trend line, is a straight line that best represents the data on a scatter plot. This line may pass through some of the points, none of the points, or all the points depending on […]

Definition of Best Linear Unbiased Estimator (BLUE) The Best Linear Unbiased Estimator (BLUE) is a concept in statistics that refers to the properties of linear estimators. In the context of linear regression models, BLUE is defined based on the Gauss-Markov theorem, which states that, under certain conditions, the Ordinary Least […]

Definition of the Bergson-Samuelson Social Welfare Function The Bergson-Samuelson Social Welfare Function is a theoretical construct used in economics to understand the optimal allocation of resources within a society. This function represents a society’s welfare as a whole, based on the utility levels of all its members. In essence, it […]