1. One reason that the predictions of the Club of Rome have not come to fruition is because:

(A) demand curves become more elastic over time.

(B) conscientious consumers reduce reuse and recycle.

(C) prices are exogenous.

(D) resources are more plentiful than first believed.

2. Quotas are:

(A) bad for the producers and consumers.

(B) good to the producers and consumers.

(C) bad for everyone.

(D) good for some producers and bad for consumers.

3. New farmers who buy a quota will:

(A) be better off than farmers that do not have a quota.

(B) earn above normal profits.

(C) earn a zero rate of return on the quota.

(D) produce more than farmers without a quota.

4. Rent control:

(A) does not affect the long run supply of the housing stock.

(B) increases social welfare.

(C) involve only a transfer of wealth from landlords to tenants.

(D) leads to higher prices for apartments at the margin if we include implicit costs.