L2 DIGITAL ECONOMY AND NEW IT Flashcards
What are the key components of the digital economy?
The digital economy includes e-commerce, online platforms, digital payment systems, cloud computing, data analytics, and AI.
How are economic activities digitalized in the digital economy?
Most economic activities, such as production, distribution, and consumption, are digitalized through electronic transactions.
What are some examples of digital economy activities?
Examples include e-commerce, digital payments, and online learning.
Give some examples of the traditional economy and the digital economy.
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.
What is digital transformation in a business context?
Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing operations and delivering value.
How has Airbnb digitalized its business processes?
Airbnb has digitalized by matching guests with hosts, facilitating bookings, and providing secure payment methods.
What are the benefits of digital technology for decision-makers?
It enables decision-makers to make more informed decisions based on efficient information processing.
How do technological changes affect the total product curve?
Technological changes shift the total product curve upward.
What are digital goods?
Digital goods are goods that can be delivered through a digital network, such as music tracks and software.
What is a supply shifter?
A supply shifter is a variable that can change the quantity of a good or service supplied at each price.
What are the economics of digital goods?
Digital goods have high fixed costs for the first unit and very low marginal production costs.
How do technological advances affect the supply curve?
Technological advances that improve production efficiency will shift the supply curve.
What are some examples of supply shifters?
Examples of supply shifters include prices of factors of production, technology, and the number of sellers.
What are some examples of demand shifters?
Examples of demand shifters include consumer preferences, quality of goods, prices of related goods, income, and demographic characteristics.
What happens to the demand curve when the quality of a good improves?
The demand curve shifts to the right.
This indicates an increase in demand at each price level.
How has on-demand consumption changed consumer behavior?
On-demand consumption allows consumers to access content and products whenever and wherever they want, unlike traditional models.
How does AI personalize good/service consumption?
AI analyzes user behavior and preferences to provide tailored product recommendations.
What role do online reviews play in consumer purchasing decisions?
Online reviews communicate information about product quality and reduce search costs for consumers.
What are some concerns regarding the addictive nature of technology?
Concerns include reduced attention span, memory issues, and increased addictive behaviors due to platforms like TikTok.
What is ad tracking and how does it work?
Ad tracking relies on cookies to build a profile about users, allowing for personalized browsing experiences.
What concerns do sleep scientists have regarding intrusive dream advertising?
Sleep scientists express concern that intrusive dream advertising manipulates consumer dreams and perceptions.
What is the digital divide?
The digital divide refers to the gap between those who have access to telecommunications and information technology and those who do not.
How does “digitalized” crime differ from traditional crime?
“Digitalized” crime leverages technology to operate anonymously and globally, making it harder to detect and prosecute.
What challenges do law enforcement face with cyber-enabled organized crime?
Law enforcement faces challenges due to the use of encryption and cryptocurrencies, making these crimes harder to trace.
What is the dark web and its challenges for policing?
The dark web allows criminals to operate anonymously, facilitating illegal activities and making policing challenging.
What challenges do governments have on online sex trafficking?
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.
How has the Silk Road demonstrated resilience against law enforcement efforts?
The Silk Road has shown a persistent ability to reemerge in various forms even after repeated shutdowns by law enforcement.
