"when resources are allocated politically, rent-seeking will"

Political allocation of resources usually refers to socialism or communism. In such a case, rent-seeking might be a loss making venture as there is very little space for the free market to manuver.

Some resources such as defence and law & order should be managed by the government. However, government involvement in things like allocation of housing, rent etc will only result in a disaster.

answermarginal cost;

answerdemographic;