Firms under-invest in safety because
A) firms are not concerned with safety.
B) firms do not want their plants to be safe.
C) firms are risk averse.
D) firms do not enjoy all of the benefits from investments in safety.
D
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
When negative externalities are connected with the production of a good,
A. market output will be greater than the socially optimal output. B. private costs and social costs are equal. C. the government should subsidize the production of the good. D. there will be a shortage of the good.
If bond prices are plotted on a graph with interest rates on the vertical axis,
A. the curve produced has a positive slope. B. the curve display no relationship to one another. C. the curve produced has a negative slope. D. the curve is a horizontal straight line at the current interest rate.
Programs that reduce the incentive to work make income redistribution inefficient
a. True b. False Indicate whether the statement is true or false