This phenomenon has also no doubt contributed to the increasing inequality of income that we observe in the U.S.

today. We will discuss that topic next, in Chapter 15.

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14 • Key Terms 353

Key Terms

affirmative action active efforts by government or businesses that give special rights to minorities in hiring,

promotion, or access to education to make up for past discrimination

bilateral monopoly a labor market with a monopsony on the demand side and a union on the supply side

collective bargaining negotiations between unions and a firm or firms

discrimination actions based on the belief that members of a certain group or groups are in some way inferior

solely because of a factor such as race, gender, or religion

first rule of labor markets an employer will never pay a worker more than the value of the worker's marginal

productivity to the firm

monopsony a labor market where there is only one employer
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