When a circuit of light bulbs is wired in such a way that if one bulb burns out the rest stay lit, it is called a circuit?

It is called parallel circuit.

In a parallel circuit, the light bulbs are connected in separate branches to the main power supply, such that if one of the branches of the circuit breaks, the other branches will continue working. This type of circuit is generally used in the domestic circuits, because it is more reliable than a series circuit (in a series circuit, all the components are connected in line to each other, so if one of them breaks, all the others stop working).