The term for the spectrum of colors observed during a prism effect is the visible spectrum. When white light passes through a prism, it is refracted at different angles, causing the light to spread into its constituent colors: red, orange, yellow, green, blue, indigo, and violet. This phenomenon illustrates the wave nature of light and is key to understanding various optical principles. The visible spectrum is significant in fields such as physics, art, and environmental science, particularly in studying light interactions.