Economics of Online Marketplaces

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Questions and Answers

What is one advantage that online marketplaces have over traditional stores?

Ability to offer a wider range of products (correct)

Lower demand for niche products

Higher physical capital costs

Limited consumer choices

What concept explains the ability of online sellers to reach consumers whose demand for products is low?

Supply chain efficiency

Long tail tendencies (correct)

Inventory management

Market concentration

How does peer production impact the information economy?

It limits the participation of skilled individuals.

It restricts innovation.

It widens the market for IT services. (correct)

It increases the cost of services.

What is a consequence of information asymmetry in markets?

Market distortions due to producers' knowledge Signup and view all the answers

What role does the internet play in product diversity for consumers?

It enables the offering of a wider variety of products. Signup and view all the answers

Which statement reflects George Berkeley's concept as discussed in the content?

Representation in information systems defines reality. Signup and view all the answers

What is a possible downside of reduced physical capital costs?

Limited access to IT services for unskilled individuals. Signup and view all the answers

What effect does the 'long tail' have on consumer behavior?

It increases the variety of products available. Signup and view all the answers

What is a direct consequence of the limitations in software verification?

Software cannot be guaranteed to be error-free. Signup and view all the answers

Which component of the Von Neumann architecture is responsible for executing instructions?

Arithmetic and logic unit Signup and view all the answers

What type of memory is part of the Von Neumann architecture?

Volatile random-access memory (RAM) Signup and view all the answers

How does the Von Neumann architecture handle program execution?

It executes programs sequentially after loading them into memory. Signup and view all the answers

What role does the control unit play in the Von Neumann architecture?

It identifies instructions to be executed. Signup and view all the answers

Which of the following best describes the Von Neumann architecture's interaction with users?

It relies on input and output devices for user interaction. Signup and view all the answers

What characterizes Moore's First Law in relation to computing hardware?

The performance of hardware doubles approximately every two years. Signup and view all the answers

Why is the central memory in the Von Neumann architecture considered volatile?

It loses content when power is lost. Signup and view all the answers

What is one primary outcome of a programmer distributing object code?

The source code can remain confidential. Signup and view all the answers

What is a significant drawback of decompilation?

It does not ensure a complete result can be obtained. Signup and view all the answers

What is necessary for good digital representation in data conceptualization?

Identification of entities and their attributes. Signup and view all the answers

What role do key attributes play in data representation?

They help in identifying each instance uniquely. Signup and view all the answers

How does the semiotic triangle illustrate the relationship of words?

It connects words to concepts and real-world instances. Signup and view all the answers

In terms of classes and instances, what is a class characterized by?

A broader concept from which instances are derived. Signup and view all the answers

According to data protection rules, what is required when storing personal attributes?

Only necessary attributes should be stored. Signup and view all the answers

What are attributes in the context of instance representation?

They are characteristics of individual instances. Signup and view all the answers

Which type of algorithm experiences a minimal increase in process time as the input size grows?

Low Computational Complexity Signup and view all the answers

An example of an algorithm with average computational complexity is:

Sequential search Signup and view all the answers

What is the primary characteristic of algorithms with high computational complexity?

Execution time increases at a more-than-proportional rate Signup and view all the answers

Which statement about machine language is true?

It consists of binary code (0s and 1s) that the computer directly executes. Signup and view all the answers

What is the role of an assembler in programming?

To translate assembler language into machine code Signup and view all the answers

What describes high-level programming languages as compared to low-level languages?

They are designed to be easier for humans to read and understand. Signup and view all the answers

Which of the following best describes how source code can be translated into object code?

Via interpretation or compilation methods Signup and view all the answers

The main challenge of using machine language for programming is:

Its low-level nature and dependency on hardware Signup and view all the answers

What is the primary purpose of the LKIF-Core Ontology?

To provide common terminology for legal information exchange Signup and view all the answers

Which of the following statements about symmetric cryptographic systems is true?

They utilize a single shared key for both operations. Signup and view all the answers

What is one function of cryptography?

To maintain the confidentiality of documents Signup and view all the answers

In asymmetric cryptography, what roles do the public and private keys serve?

The public key is used for encryption, while the private key is for decryption. Signup and view all the answers

Which of the following best defines a digital signature?

A mechanism ensuring the authenticity of a document using asymmetric cryptography Signup and view all the answers

What concept does the term 'hash' relate to in cryptography?

A fixed-length value representing an original document Signup and view all the answers

What is a key characteristic of asymmetric cryptographic systems?

They use a pair of keys: one public and one private. Signup and view all the answers

Which example illustrates the concept of symmetric cryptography?

Shifting letters in the alphabet as in Caesar’s Cipher Signup and view all the answers

Which of the following best describes a key benefit of blockchain technology in cryptocurrencies?

It ensures the security of exchanges. Signup and view all the answers

What is a defining characteristic of big data?

It comes in various formats including text and images. Signup and view all the answers

What role do smart contracts play in peer-to-peer networking?

They automate and execute contractual agreements. Signup and view all the answers

Which of the following does not contribute to the phenomenon of big data?

Low internet connectivity. Signup and view all the answers

What is a potential challenge posed by big data?

Concerns regarding data privacy. Signup and view all the answers

Which of the following aspects does not describe big data's velocity?

It limits the volume of data available. Signup and view all the answers

What primarily drives the increase in the volume of data?

Widespread adoption of sensors and smart devices. Signup and view all the answers

How does data analysis contribute to handling big data?

It extracts useful information from data. Signup and view all the answers

Study Notes

Information Society Characteristics

Characterized by a shift from industrial to information-based society
Information and communication technologies (ICTs) are central
Information is the raw material
New technologies have pervasive effects
Interconnectivity creates a network society
Flexibility in processing, use, and distribution of information
Convergence of different technologies
Increase in available information
Automation of activities
Emergence of big data and artificial intelligence
New opportunities and challenges for individuals
Concerns about privacy, autonomy, and inequality
Internet of Things (IoT) connects physical objects to the internet
Network effect: value of a network increases with more users
Risk of monopolies due to network effects
Information asymmetry: producers often know more than consumers
Market distortions can happen because of information asymmetry

Network Society, Network Effect, and Monopolies

Network effect describes how a network's value increases exponentially with more users
Increased value drives adoption of dominant products/services
Network growth can lead to horizontal monopolies (controlling contiguous products)
Software interoperability can mitigate this tendency
Long tail trend: reduced distribution costs allow niche products to reach more consumers
Decreased physical capital costs widen participation in information economy (peer-to-peer production, open-source).
Information asymmetry: potentially leading to market distortions

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Description

Explore the dynamics of online marketplaces through this quiz. Test your understanding of concepts like peer production, information asymmetry, and the effects of the internet on consumer behavior. Delve into economic theories and their application in the digital age.