Instructor judges your ability to continue based on how well you do ground procedures. Student performs first emergency landing. Student eligible to start BI flights. Instructor starts springing simulated emergencies on the student to add to flying experience. Student performs first emergency landing with simulated engine failure at high altitude.
Student does first emergency landing with power loss at low level.
Instructors get very creative with emergencies, like engine fires with fumes in the cockpit and electrical failure, all below safe bail-out altitude. Even though everything has prepared you for this, students still dread it. Just make five landings and flight is considered a success. Have fun but don't do anything dumb. One failure is enough.