L2 DIGITAL ECONOMY AND NEW IT

Question 1

What are the key components of the digital economy?


Answer 1

The digital economy includes e-commerce, online platforms, digital payment systems, cloud computing, data analytics, and AI.

Question 2

How are economic activities digitalized in the digital economy?


Answer 2

Most economic activities, such as production, distribution, and consumption, are digitalized through electronic transactions.

Question 3

What are some examples of digital economy activities?


Answer 3

Examples include e-commerce, digital payments, and online learning.

Question 4

Give some examples of the traditional economy and the digital economy.

Answer 4

Traditional economy: Factories, high street shops, newspaper ads, banks, schools, physical assets.

Digital economy: Data centers/cloud computing, internet websites, social media reviews, e-banking, e-learning, automation, and AI.

Question 5

What is digital transformation in a business context?


Answer 5

Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing operations and delivering value.

Question 6

How has Airbnb digitalized its business processes?


Answer 6

Airbnb has digitalized by matching guests with hosts, facilitating bookings, and providing secure payment methods.

Question 7

What are the benefits of digital technology for decision-makers?


Answer 7

It enables decision-makers to make more informed decisions based on efficient information processing.

Question 8

How do technological changes affect the total product curve?


Answer 8

Technological changes shift the total product curve upward.

Question 9

What are digital goods?


Answer 9

Digital goods are goods that can be delivered through a digital network, such as music tracks and software.

Question 10

What is a supply shifter?


Answer 10

A supply shifter is a variable that can change the quantity of a good or service supplied at each price.

Question 11

What are the economics of digital goods?


Answer 11

Digital goods have high fixed costs for the first unit and very low marginal production costs.

Question 12

How do technological advances affect the supply curve?


Answer 12

Technological advances that improve production efficiency will shift the supply curve.

Question 13

What are some examples of supply shifters?


Answer 13

Examples of supply shifters include prices of factors of production, technology, and the number of sellers.

Question 14

What are some examples of demand shifters?


Answer 14

Examples of demand shifters include consumer preferences, quality of goods, prices of related goods, income, and demographic characteristics.

Question 15

What happens to the demand curve when the quality of a good improves?


Answer 15

The demand curve shifts to the right.
This indicates an increase in demand at each price level.

Question 16

How has on-demand consumption changed consumer behavior?


Answer 16

On-demand consumption allows consumers to access content and products whenever and wherever they want, unlike traditional models.

Question 17

How does AI personalize good/service consumption?


Answer 17

AI analyzes user behavior and preferences to provide tailored product recommendations.

Question 18

What role do online reviews play in consumer purchasing decisions?


Answer 18

Online reviews communicate information about product quality and reduce search costs for consumers.

Question 19

What are some concerns regarding the addictive nature of technology?


Answer 19

Concerns include reduced attention span, memory issues, and increased addictive behaviors due to platforms like TikTok.

Question 20

What is ad tracking and how does it work?


Answer 20

Ad tracking relies on cookies to build a profile about users, allowing for personalized browsing experiences.

Question 21

What concerns do sleep scientists have regarding intrusive dream advertising?


Answer 21

Sleep scientists express concern that intrusive dream advertising manipulates consumer dreams and perceptions.

Question 22

What is the digital divide?


Answer 22

The digital divide refers to the gap between those who have access to telecommunications and information technology and those who do not.

Question 23

How does “digitalized” crime differ from traditional crime?


Answer 23

“Digitalized” crime leverages technology to operate anonymously and globally, making it harder to detect and prosecute.

Question 24

What challenges do law enforcement face with cyber-enabled organized crime?


Answer 24

Law enforcement faces challenges due to the use of encryption and cryptocurrencies, making these crimes harder to trace.

Question 25

What is the dark web and its challenges for policing?


Answer 25

The dark web allows criminals to operate anonymously, facilitating illegal activities and making policing challenging.

Question 26

What challenges do governments have on online sex trafficking?


Answer 26

Governments face challenges in reducing online sex trafficking, as the market for commercial
sex advertising appears agile enough to quickly disperse to offshore sites after a few popular domestic sites are shut down.

Question 27

How has the Silk Road demonstrated resilience against law enforcement efforts?


Answer 27

The Silk Road has shown a persistent ability to reemerge in various forms even after repeated shutdowns by law enforcement.