________ involves undertaking an activity until its marginal ...

[dakota nelson]

________ involves undertaking an activity until its marginal benefits equal marginal costs.
 
  A) Market intervention B) Scarcity reduction
  C) Central planning D) Marginal analysis

Question 2

How are scarce housing resources allocated when a rent ceiling is in place?
 
  What will be an ideal response?

[flannelavenger]

Answer to Question 1

D

Answer to Question 2

With an effective rent ceiling, some means for allocation of housing units (other than by price) becomes necessary. Some housing is allocated by first-come, first-serve. Other housing is allocated by discrimination. Black markets also develop, where housing units are allocated at a rent higher than the regulated rent.

[dakota nelson]

Correct answers!

[flannelavenger]

Great! Please up vote