The price that a firm's only competitor charges would be a

Mr. Smith earns $100,000 per year. Each year he spends $50,000 and saves $50,000. He pays a 5 percent sales tax on all of his spending. Assuming the sales tax is the only tax he pays, his average tax rate out of his income is

A) 0 percent. B) 2.5 percent. C) 3.5 percent. D) 5.0 percent.

Some economists are skeptical of the argument that employers are responsible for discriminatory wage differences. They argue that market economies provide a natural remedy to employer discrimination, and that remedy is

a. social responsibility. b. the profit motive. c. fear of reprisal from groups that suffer from those wage differences. d. fear of reprisal from government in the form of prosecution.