Section VI – Knowledge Check 1. All of the following are associated with Marxist ideology except:* A. No property ownership/property rights B. Central planning C. Totalitarian government D. Entrepreneurship 2. The most important driver of wealth creation is:* A. Government subsidies B. Innovation C. Price controls D. High minimum wages 3. Which of the following is not a factor of production:* A. Free trade B. Land C. Labor D. Capital 4. A _______________ refers to a marketplace that is free from government intervention or price controls:* A. Command economy B. Monopolistic market C. Free market D. Regulated marketplace 5. Engaging in one activity at the expense of another is known as:* A. Efficient allocation of resources B. Diminishing marginal return C. Diminishing marginal utility D. Opportunity cost 6. ________________ occurs when a disruptive innovation destroys/replaces existing technology and process if not entire industries:* A. Competitive devaluation B. Creative destruction C. Barriers to entry D. Diminishing marginal utility 7. The central bank of the United States is known as:* A. Federal Deposit Insurance Corporation B. Federal Home Loan Bank C. The Federal Reserve System D. Fannie Mae 8. ____________ occurs when the general level of prices for goods and services is rising and purchasing power of currency is falling.:* A. Creative destruction B. Deflation C. Disintermediation D. Inflation 9. The measure of a nation’s economic output, which is comprised of consumption, investment, government spending and net exports is: known as:* A. Gross domestic product/GDP B. Capacity utilization C. Balance of payments D. Trade surplus 10. ______________ refers government legislation relating to spending and taxation:* A. Monetary policy B. Social policy C. Fiscal policy D. Trade policy