Introduction to Moore's Law and Technology Advancements

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Questions and Answers

What impact does the increase of mobile phones have on a country's GDP?

It does not have any effect on the GDP.

The impact only occurs in developed countries.

It reduces the GDP significantly.

For every ten mobile phones per one hundred people, GDP increases by 0.5 percent. (correct)

Who won the Nobel Peace Prize for contributions to microfinance?

Amartya Sen

Bill Gates

Muhammad Yunus (correct)

Nelson Mandela

What role do 'phone ladies' play in the Grameen Phone model?

They manage the Grameen Phone company.

They sell mobile phones at a discount.

They act as mobile banking agents for banks.

They serve as village operators, providing telecom services to their communities. (correct)

How much did it cost for a phone lady to buy a phone and special antenna using microcredit?

$150 Signup and view all the answers

What unique system was introduced in Kampala involving prepaid airtime cards?

A currency exchange system using airtime as currency. Signup and view all the answers

What was the unexpected outcome of Vodafone's M-PESA program in terms of customer acquisition?

They gained 200,000 new customers within a month. Signup and view all the answers

What potential benefit does mobile banking offer to unserved customers?

It may bring banking services to a billion unserved customers. Signup and view all the answers

Which statement accurately describes Moore's Law?

It states that the number of transistors on a microchip doubles approximately every two years. Signup and view all the answers

What is Moore's Law generally defined as?

Chip performance per dollar doubles every eighteen months. Signup and view all the answers

Which of the following technologies does Moore's Law primarily relate to?

Chip manufacturing Signup and view all the answers

How does price elasticity associated with technological advancements affect markets?

It opens new markets and opportunities for firms and society. Signup and view all the answers

What key aspect of computing has been significantly impacted by the phenomena of faster and cheaper technologies?

The emergence of mobile phones in rural areas. Signup and view all the answers

What term was coined following Gordon Moore's observation about chip manufacturing?

Moore's Law Signup and view all the answers

Which of the following statements best describes the implications of faster and cheaper computing on industries?

They enhance strategic planning and accounting practices. Signup and view all the answers

What was the original timeframe identified by Moore for the doubling of chip performance per dollar?

Two years Signup and view all the answers

Which of the following best describes the role of the microprocessor in a computing device?

It serves as the brain of the device. Signup and view all the answers

What major digital media product did iTunes successfully launch after its introduction?

Digital media powerhouse Signup and view all the answers

Which company did not adapt quickly to the changes in digital music sales, leading to its decline?

Sony Signup and view all the answers

How much did Apple’s stock value increase six years after the iPod launch?

Sixteenfold Signup and view all the answers

What concept illustrates the rapid changes in technology and their impact on industry?

Moore’s Law Signup and view all the answers

What was the primary selling point of iTunes in its early years compared to traditional music retailers?

Availability of music on demand Signup and view all the answers

How did the largest corporate database size change from 1995 when Amazon was founded?

Increased to 1 TB Signup and view all the answers

What was a key component to Apple surpassing its competitors in the music sales market?

Introduction of iTunes Signup and view all the answers

Which two companies tied for the fourth position in U.S. music retailers in 2006?

iTunes and Amazon Signup and view all the answers

What is the primary function of the GlowCap device?

To remind patients to take their medications Signup and view all the answers

What unique technology does Proteus use in its sensor?

A chip activated by the body's digestive acids Signup and view all the answers

How has Moore’s Law influenced access to technology among poorer populations?

It has increased the affordability and availability of technology. Signup and view all the answers

By how much did the highest-capacity iPod sold after six years hold more songs compared to the original?

Forty times more songs Signup and view all the answers

What product line did Apple expand into following the success of the original iPod?

Smartphones and tablets Signup and view all the answers

What effect have cheaper and faster chips had on the camera industry?

They have resulted in leadership shifts within the industry. Signup and view all the answers

What strategic advantage did Amazon gain from declining magnetic storage costs?

Enhanced inventory management capabilities. Signup and view all the answers

What is a notable feature of the iTunes store mentioned in the context?

It frequently sells millions of songs on Christmas Day Signup and view all the answers

How does Moore’s Law specifically impact production decisions in industries?

It encourages firms to keep inventory levels lower due to faster production capabilities. Signup and view all the answers

What communication capability does the GlowCap have besides visual and audio alerts?

It can call and text the patient and others Signup and view all the answers

What significant change did Apple make to its brand in 2007?

Dropped the word 'Computer' from its name Signup and view all the answers

What is a significant impact of the 'faster, cheaper' trend on Apple's business lines?

It has allowed for unique pricing strategies and product diversification. Signup and view all the answers

What features does the waterproof skin patch developed by Proteus have?

It relays data when the patient is near their phone Signup and view all the answers

Which sectors are likely to suffer as technology prices decrease according to the discussion on inelastic goods?

Health care and housing. Signup and view all the answers

What has been one of the key effects of fiber-optic technology on data transmission?

Higher transmission speeds over longer distances. Signup and view all the answers

Which of the following best describes the implications of semiconductor materials in chip production?

They can enable and inhibit the flow of electricity. Signup and view all the answers

Study Notes

Learning Objectives

Define Moore’s Law, highlighting that chip performance doubles approximately every eighteen months.
Understand the price elasticity of technology, revealing how lower costs and faster performance foster new market opportunities.
Recognize terms used for measuring data capacity, essential for understanding technological advancements.
Analyze the managerial implications of advanced computing in areas such as strategic planning, inventory management, and accounting.

Moore's Law and Its Impact

Moore's Law, proposed by Gordon Moore in 1965, reflects the rapid advancement in chip manufacturing, leading to cheaper, more powerful chips.
The microprocessor serves as the brain of all computing devices, with significant influence across industries.
Examples demonstrate that advancements driven by Moore's Law have affected everyday products, such as mobile phones and medical devices.

Innovations in Healthcare

The GlowCap can notify users about medication adherence and communicate vital statistics to healthcare professionals.
The Proteus chip in medicine, powered by digestive acids, transmits health data to physicians via a wireless device, showcasing technological integration in healthcare.

Apple’s Rise through Innovation

Apple transitioned from being known solely as a computer manufacturer to a diversified tech giant, attributed to the successful launch of the iPod.
The price and capacity of the iPod changed dramatically in less than six years, enhancing market penetration and leading to new product lines such as iPhone and iTunes.
iTunes grew to become the world’s largest music retailer, showcasing how digital platforms can disrupt traditional sales channels.

Economic Implications of Technology

Faster and cheaper technology has impacted mobile phone distribution, enabling economic growth in developing regions.
In Bangladesh, microfinance and mobile phones have created opportunities for individuals known as "phone ladies" to operate village-scale telecommunications businesses.
Innovations in mobile banking, like M-PESA in Kenya, demonstrate how technology can facilitate economic transactions and empower underserved populations.

Industry Disruption and Transformation

Moore’s Law restructured the music industry, with traditional retailers failing to compete against digital platforms.
The decline in storage prices enabled companies like Amazon to utilize affordable, expansive databases, paving the way for e-commerce growth.
The significant correlation between mobile phone access and GDP growth highlights technology's role in economic development.

Conclusion

Understanding Moore’s Law and its implications provides a framework for analyzing technological advancements.
The interplay of affordability, capacity, and performance shapes not only individual firms but entire industries, emphasizing the importance of adaptability in business strategy.

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Description

This quiz covers the fundamentals of Moore's Law and its implications on technology advancement. It delves into the rate of change in technologies such as magnetic storage and telecommunications. You will also explore how price elasticity relating to faster and cheaper technologies creates new markets and opportunities.