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Take the economic literacy test; It's a bit of fun
Topic Started: 15 Oct 2016, 05:06 PM (3,524 Views)
Khaderbhai
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Wealthy Suburbanite

More restaurants = more competition, so each restaurant needs to cut costs and improve quality to attract customers.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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herbie
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stinkbug
15 Oct 2016, 07:52 PM
18/20. I also got the fast food one wrong, but disagree with the 'correct' answer (which is theoretical).
I remain a conscientious objector - As in I ain't f***ing doin' it; Like wot's in this shit for me? ('n/or mine) ... :)
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Bardon
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32/33
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Sydneyite
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A Lurker
15 Oct 2016, 07:45 PM
19/20. Only the fast food one wrong and I disagree with which answer they consider to be correct.
Same here! I don't think their answer on that one is correct.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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A Lurker
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Khaderbhai
15 Oct 2016, 07:54 PM
More restaurants = more competition, so each restaurant needs to cut costs and improve quality to attract customers.
More fast food = cheaper. Compete on price not quality. Lower price and lower quality.

If it didn't specify "fast food" and was just restaurants I'd agree with you (and them).
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Khaderbhai
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Wealthy Suburbanite

A Lurker
15 Oct 2016, 09:47 PM
More fast food = cheaper. Compete on price not quality. Lower price and lower quality.

If it didn't specify "fast food" and was just restaurants I'd agree with you (and them).
If a town has a single burger joint, then it can charge high prices and serve crappy food because there's no other choice for consumers. If a second burger joint opens next door then consumers have a choice - they will eat where prices are lower and the food is better, so both vendors are forced to compete against each other on both cost and quality.

I get what you're saying though - that if the town also has high quality restaurants as well as fast food joints, then the overall quality of food in the town will deteriorate due to a greater prevalence of fast food in general. But we can't assume there are any other restaurants in the town. The question assumes there are only fast-food places. The correct answer should maybe have been worded like this...

A: Lower priced and higher quality fast food.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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Ex BP Golly
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Khaderbhai
15 Oct 2016, 07:54 PM
More restaurants = more competition, so each restaurant needs to cut costs and improve quality to attract customers.
Logically and economic theory wise correct, but reality throws up exceptions, especially when it comes to fast food.

Take MRM for example.

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WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Jimbo
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Sydneyite
15 Oct 2016, 06:42 PM
I got 90% (18/20).
I got 0.25%
stinkbug
15 Oct 2016, 07:52 PM
18/20. I also got the fast food one wrong, but disagree with the 'correct' answer (which is theoretical).
I got 19/20 and I got the fast food one correct.

"A large increase in the number of fast-food restaurants in a community is most likely to result in?"

Of course this will lead to lower prices and higher quality but only in the goods and services that the fast food restaurants provide.

The quality of life for those around the area will go down the dunny, but that was not the question.

The one that I got wrong was "Which one of the following statements about the function of money is wrong?" but I read the question incorrectly and chose a true answer instead of a false answer (I chose "Money makes trading goods and services easier.").

Edited by Jimbo, 15 Oct 2016, 11:31 PM.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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newjez
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Rufus
15 Oct 2016, 05:06 PM
19, but I would question the answer of 12.

Incidentally, if you answer don't know , you will have answered correctly, assuming you actually don't know.
Khaderbhai
15 Oct 2016, 07:54 PM
More restaurants = more competition, so each restaurant needs to cut costs and improve quality to attract customers.
No, some will cut costs and may lower quality. Some will compete on quality. In a recession, luxury brands can do well if they offer value for money. Take supermarkets in the UK as an example. The low end and high end did well. Middle of the range lost market share.
Edited by newjez, 15 Oct 2016, 11:59 PM.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Ex BP Golly
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Jimbo
15 Oct 2016, 11:09 PM
I got 19/20 and I got the fast food one correct.

The one that I got wrong was "Which one of the following statements about the function of money is wrong?" but I read the question incorrectly and chose a true answer instead of a false answer (I chose "Money makes trading goods and services easier.").

Same question wrong with me for 19/20.

I put it down to being bored to death by the time I got to the last question and just scanned it.

Never mind. :lol

I actually thought a number of then we're incorrect, but a Shadow said, it was more logic than economic knowledge to get then right.
Edited by Ex BP Golly, 16 Oct 2016, 12:02 AM.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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