In setting the price of its product, a monopolistic competitor sets the price equal to its marginal cost plus an amount called the

A bank that expects interest rates to fall will

A) want the duration of its assets to be greater than the duration of its liabilities—a positive duration gap. B) want the duration of its assets to be less than the duration of its liabilities—a positive duration gap. C) want the duration of its assets to be greater than the duration of its liabilities—a negative duration gap. D) want the duration of its assets to be less than the duration of its liabilities—a negative duration gap.

Brain scientists have found that the human brain devotes more neurons toward processing and interpreting visual information than it does to anything else, therefore:

A. We can always believe what our eyes tell us B. We should only believe what our eyes tell us C. Since our eyes can fool us, we probably make mental mistakes in other areas too D. Behavioral and neoclassical economists agree that our visual impressions are always right