Technology and Its Impact

Technology is now accessible globally, even in developing economies, often before basic needs like sanitation. The rapid adoption of technology, exemplified by Twitter's swift growth compared to television, highlights its pervasive nature. Digital technology impacts economics through non-rivalry and consumer surplus, challenging companies to monetize effectively. Technology investments span sectors like healthcare and education, with the Internet of Things connecting devices for improved management. Industry competition is reshaped as technology allows small companies to disrupt traditional sectors, with firms like Amazon and Alibaba entering new markets.

What is a notable feature of technology's global reach?

• It is only accessible to the wealthy.

• It is restricted to large companies.

• It is only available in developed countries.

• It is more common than sanitation in some developing areas.

How long did it take for Twitter to reach 50 million users compared to television?

• 38 years

• 9 months

• 5 years

• 1 year

What is a key economic feature of digital technologies?

• They are expensive to produce.

• They are only beneficial to companies.

• They have high marginal costs.

• They are non-rivalrous and excludable.

What challenge do companies face with digital technologies?

• Increasing production costs

• Generating revenue and monetization

• Lack of consumer interest

• Limited market reach

Which sectors are seeing pervasive investment in technology?

• Only the healthcare sector

• Only the public sector

• All sectors including healthcare, public, education, and industrial

• Only the industrial sector

What is the Internet of Things expected to impact?

• Only entertainment

• Traditional manufacturing processes

• Machine-to-machine communication and energy management

• Only personal communication

How is technology changing industry competition?

• By reducing the number of competitors

• By limiting competition to large companies

• By focusing only on local markets

• By enabling small companies to disrupt large sectors

Which company is an example of entering a new industry through technology?

• Microsoft entering the fashion industry

• Amazon entering computing with Cloud services

• Facebook entering the automotive industry

• Google entering the food industry

What is a significant change in industry structure due to technology?

• Decreased innovation

• Competition coming from outside traditional sectors

• Increased focus on local markets

• Reduced consumer choice

What is a potential outcome of technology-based competition?

• Only local markets will be affected

• Technology will become less important

• Small companies can disrupt established sectors

• Only large companies will survive