1. Two goods are substitutes if an increase in the price of one good leads to an increase in demand for the other.

A) True

B) False

2. If the quantity supplied of a product is greater than the quantity demanded for a product, there is pressure in the market to push the price upward.

A) True                                        

B) False

3. The market system works by getting each person, motivated by his or her own self-interest, to produce products for other people.

A) True

B) False

4. Markets exist to facilitate exchange between people.

A) True

B) False

5. The cost of a master's degree in engineering equals the tuition plus the cost of books.

A) True

B) False