When the financial institution is hedging interest-rate risk on its overall portfolio, then the hedge is a

Which of the following statements best reflects how a behavioral economist views individual decision making?

A. Alex makes wrong decisions sometimes, but usually it is only when he has been given bad information. B. Kara carefully calculates and weighs the expected benefits and costs of every option before making a decision. C. Alicia may appear to care about others, but even her seemingly altruistic behaviors are really about furthering her own interests. D. Balin tries to make good, well-thought-out decisions, but his desire for utility in the present means that he often gives in to costly temptations.

In the short run, firms in monopolistically competitive markets

A. produce the output level where marginal revenue equals marginal cost. B. can earn economic profits. C. face a downward-sloping demand curve. D. All of these responses are correct.