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PFL-Economics Mid-Term Review

Total questions: 25

Worksheet time: 14mins

Name
Class
Date
1.

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

a)

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

b)

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

c)

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

d)

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

2.

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

a)

Grants

b)

Scholarships

c)

Work-Study

d)

Student Loans

3.

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

a)

Grants

b)

Work-Study

c)

Scholarships

d)

Student Loans

4.

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

a)

Grants

b)

Work-Study

c)

Scholarships

d)

Student Loans

5.

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

a)

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

b)

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

c)

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

d)

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

e)

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

6.

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

a)

scholarships

b)

loans

c)

debts

d)

interests

7.

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

a)

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

b)

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

c)

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

d)

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

8.

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

a)

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

b)

B. Customs and tradition determine what goods are produced.

c)

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

d)

D. Property and resources are all nationally-owned.

e)

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

9.

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

a)

Regressive

b)

Ability to Pay

c)

Progressive

d)

Benefits recieved

10.

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

a)

Verify mailing address

b)

Confirm dependency status

c)

Confirm high school graduation date

d)

Calculate your family's contribution to education

11.

For a consumer, which is part of making an economic choice?

     

a)

The consumer makes goods and services to sell to others.

b)

  The consumer moves to a place that has very few businesses.

c)

The consumer purchases everything he or she needs or wants.

d)

The consumer weighs his or her needs and wants before spending money.

12.

What health insurance plan is sponsored by a large company who forms a contract with certain health agencies to provide certain types of health care at reduced rates?

a)

HMO

b)

PPO

c)

Indemnity Plans

d)

Out of Pocket

13.

John must pay $10 for each visit to his physician. What term describes the $10 payment?

a)

Deductible

b)

Co-Insurance

c)

Premium

d)

Co-Payment

14.

What do the initials PPO stand for?

a)

Preferred Provider Option

b)

People's Preferred Option

c)

Preferred Provider Organization

d)

Partial Practice Organization

15.

What is the disadvantage of belonging to an HMO?

a)

monthly fee, no additional charge for care

b)

required to see only HMO affiliated providers

c)

care is directed toward prevention of disease

d)

private insurance option

16.

The amount that must be paid by the patient for medical services before the policy begins to pay is the:

(a)  

17.

Short term disability is coverage for someone who is out of work for a short period of time

a)

True

b)

False

18.

When do you need disability insurance?

a)

When you lose your job

b)

When you first obtain a job

c)

When you drop out of school

d)

When you become disabled and are unable to earn an income

19.

What is the waiting period for short term disability insurance?

a)

0-4 weeks

b)

0-14 days

c)

6 months or less

d)

0-14 weeks

20.

What percent of your income does disability insurance cost?

a)

They are all the same 1-3%

b)

Short term 3-5% Long Term 1-3%

c)

Short Term 1-3% Long Term 3-5%

d)

None of these answers are correct

21.

Long term disability insurance can take up to several months to obtain

a)

True

b)

False

22.

What is not covered by Long-term Care Insurance?

a)

Medical care costs

b)

Nursing homes

c)

Short-term hospice care for individuals who are terminally ill

d)

At-home care

23.

Long-term care insurance is coverage that provides nursing-home care, and personal adult daycare for seniors with a chronic or disabling condition that needs constant supervision.

a)

True

b)

False

24.

The older the senior is , the cheaper their premium will be.

a)

True

b)

False

25.

When looking at options for LTC insurance, you should consider:

a)

Rates

b)

Benefits and discounts

c)

What is and isn't covered, and out-of-pocket money

d)

All of the above