Skip to ContentGo to accessibility pageKeyboard shortcuts menu
OpenStax Logo
Principles of Economics 2e

Key Terms

Principles of Economics 2eKey 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
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
a labor market where there is only one employer
perfectly competitive labor market
a labor market where neither suppliers of labor nor demanders of labor have any market power; thus, an employer can hire all the workers they would like at the going market wage
Order a print copy

As an Amazon Associate we earn from qualifying purchases.


This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Attribution information
  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at
Citation information

© Jun 15, 2022 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.