PFL-Economics Mid-Term Review

Which statement best explains the impact of fiscal policies on the unemployment rate?

• When the government reduces taxes, it prompts consumers to increase spending, leading businesses to boost production, ultimately resulting in a decrease in unemployment.

• When the government reduces taxes, it prompts consumers to decrease spending, leading businesses to reduce production, ultimately resulting in a decrease in unemployment.

• When the government increases spending, it prompts businesses to reduce production, ultimately resulting in a increase in unemployment.

• When the government reduces spending, it contracts companies to manufacture goods that the government needs, leading to a rise in unemployment.

Which type of financial aid involves programs offering career-related work experience?

• Grants

• Scholarships

• Work-Study

• Student Loans

What type of financial aid is typically awarded based on a student's achievements and/or accomplishments?

• Grants

• Work-Study

• Scholarships

• Student Loans

Which financial aid option involves borrowed funds that must be repaid?

• Grants

• Work-Study

• Scholarships

• Student Loans

Which statement is TRUE about the value of a college degree? Select TWO correct answers.

• A high school graduate can expect to earn about the same as a college graduate.

• A college degree generally leads to higher lifetime earnings compared to a high school diploma.

• A college graduate can expect to earn, on average, more than a high school graduate over a career.

• A college graduate typically earns less than someone with a high school diploma for the first 10 years.

• Every college graduate can expect to have a starting salary over $60,000 right after college.

Grants and _______ are better than student loans for financing college because they do not require repayment.

• scholarships

• loans

• debts

• interests

Based on this excerpt, how do economic concepts like choice and opportunity cost relate to everyday decision-making?

• Choice and opportunity cost involve deciding between different activities and understanding that choosing one option means forgoing others.

• Choice and opportunity cost primarily affect financial decisions and are less relevant to balancing academic and personal responsibilities.

• Choice and opportunity cost are only relevant in a professional context, not in managing a college workload or extracurricular activities.

• Choice and opportunity cost only impact the decision-making of individuals with a flexible work-life balance.

Which statements describe some of the benefits of a free enterprise economy? Select TWO correct answers.

• A. Individuals and businesses are allowed to own private property.

• B. Customs and tradition determine what goods are produced.

• C. All major economic decisions are made by government planners.

• D. Property and resources are all nationally-owned.

• E. Profits and wages motivate individuals and firms to engage in the economy.

Which taxation underlies the levels of taxation shown for the three individuals in the infographic above.

• Regressive

• Ability to Pay

• Progressive

• Benefits recieved

What is the purpose of providing parents' information when completing FAFSA application?

• Verify mailing address

• Confirm dependency status

• Confirm high school graduation date

• Calculate your family's contribution to education