PFL review 2

A risk management strategy that involves an individual or business absorbing costs rather than transferring the cost to an insurance company is 

• Avoidvance

• Reducing

• Retaining

• Transferring

Organize these options into the right categories

Groups:

(a) Long term care insurance

,

(b) Disability insurance

• Protects your income

• Protects your assets

• Requiring physical therapy after an accident would most likely be covered under?

• Developing Alzheimer's would be included under?

Upon moving out of your parent’s basement and into your own home, one of the first things you decide to buy is a dog. Because you live alone, you decide to get a pitbull not only for companionship but also for protection. One day, one of your neighbors stops by for a visit and your pitbull bites the neighbor. What part of your homeowner’s insurance coverage will help your neighbor pay for his medical bills and potentially missed days at work?

• Escrow coverage

• Liability coverage

• Replacement coverage

• Your homeowner’s insurance does not pay for the dog bite.

Which of the following are ways in which consumer protection agencies work to protect consumers? Select the 3 correct answers.

• Promoting consumer education

• Investigating and prosecuting cases of fraud

• Investigating and prosecuting cases of unfair competition

• Passing Consumer Protection Laws

What is the collection of preparatory tasks which serve to manage an individual’s assets in the event of their death or incapacitation?

• Power of attorney

• Will Planning

• Living Will

• Estate Planning

All of the following are reasons why estate planning is important EXCEPT

• Increases tension in families

• Protection of beneficiaries

• Provides direction for guardianship of young children

• Mitigates expensive tax hikes

Use the graph and your knowledge of Social Studies to answer the following question.

According to the graph,

 

• as education level increases, unemployment increases

• as education level increases, unemployment decreases

• as education level decreases, unemployment decreases

• as education level decreases, unemployment decreases

Which of the following is an example of earning income from capital gains?

• Hourly wage of $15 per hour

• Salaried employee earning $70,000 a year

• Selling stocks and earning $5000

• Selling a car and making a profit of $3000

___________are the engines of innovation that bring new ways of organizing land, capital and labor to produce new goods and services.

• Capitalists

• Tycoons

• Laborers

• Entrepreneurs

All of the following individuals are major entrepreneurs who have built major business empires EXCEPT

• Todd Davis

• Kylie Jenner

• Elon Musk

• Sam Walton