Economic inefficiency exists when

Copper falls into which factor of production category?

A) land B) labor C) capital D) entrepreneurship

A central concept of New Keynesian macroeconomics is that in setting prices and wages, self-interested firms and workers are acting

A) irrationally, since their self-interest is badly damaged by the ensuing business cycles. B) irrationally, since this imposes business cycles on everyone not part of their arrangements. C) rationally, since they do not bear a fully offsetting cost of business cycles. D) rationally, since the total welfare loss of business cycles must be small enough to justify the price and wage setting.