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Header image

The Digital Divide & Economics

Posted by Ho Jun in Humanities on Wednesday, October 31st, 2012 at 3:27 pm

Abstract

If Information Technology are increasing then the PPF model would shift outward. For example, if South Korea is represented in the PPF model then the curve will shift outward. Because they are spending a lot of money for information technology and they are one of the many developed countries.

For the last few weeks in the class  learned about Digital divide. The class made an experiment about how we can make more outputs in a Production Possibility Frontier (PPF) model. There were two groups in this class, each had to do an experiment with hypothesis that the group had come up with. These data from the experiment will be primary sources that will be put into the production possibility frontier (PPF) model which will be analyzed later in this blog post.

From the results of the experiment, if a country spends a lot of money for the information technology then we can see that Information technology helps for the PPF models curve will be bigger and this means the PPF model will push outwards.

Background Knowledge

Digital divide is the one of the global issue in the world. We can divide the digital divides to rich and the poor because of the different amount of information Technology(IT) that they can access. The rich have access to a lot of Information Technology because they have enough money to access the Information Technology. While rich accessing the Information Technology, the poor cannot access to the Information Technology because poor don’t have enough money to access it. We call this digital divides. If digital divide is keep happening, the countries that cannot access to the IT won’t develop because the countries don’t have enough Information Technology and Money to develop their country but the countries that can access the IT will keep developing and developing. Example, like our school, the school give laptops all the students over grade 6 that’s why we can find the information easily and we don’t need to bring heavy books. However the students in the local school have no enough resources to access the IT and they cannot find the information easily.

Before we solve this problem, we need to know about Economics first. Most of the people misunderstanding that Economic is study of  Money and business but it is not. Economics  is about studying about people to use their scarce resources and how people behave. It is impossible to fulfill their own wants and own needs because there isn’t enough resources which means it is limited.

Scarce, which is Scarcity  there is not enough of something, resources, services, and products, to satisfy everyone’s wants, at a zero price. It is impossible to fulfill people wants because people has infinite of greeds and the resources are all limited. There are a lot of examples for scarcity and one of the example of scarcity is oil. Oil is not in anywhere. It is in a certain region and it is almost from Iraq, Saudi Arabia, etc. As this almost all of the resources are very limited.

There is a very limited resources people has to make a good choice. The good choice that people make are called Opportunity Cost. Opportunity Cost is one of the most important part in economics. Definition of the Opportunity cost is the value of the next best move. In a simpler meaning people must give up something to decide the best one. A example of the Opportunity cost to find out it more easily is in our daily life that he/she wants to do the same time which are playing games and studying. If she makes the choice to play games then this means that he/she is discards to study and this is called Opportunity cost. Or he/she makes the choice to study and discards to play games and at the same time this is also called Opportunity cost.

Why is the PPF model used in this experiment?

PPF is Production Possibility Frontier. Production Possibility Frontier a fundamental model in economics because it shows the goods and services produced. When the people can see what happens it allows economists to graph and where they have to make the good choice and where the opportunity cost has to exists. The curve from the graph pushes out it means the goods and services are producing well, and if it pulls down the goods and services aren’t producing well.

 

Presentation and analysis of Data

 

As the technique changes it shows differently. Both Red and Yellow balls amounts changes in different amount. Both of them there output increased because on the second experiment the technique was to pass 2 balls each time. The output increased up 2 times than before by the change of technology. When there were more members in ‘Red balls’ there outputs were more than ‘Yellow Balls’ obviously and when one by one the members moved to ‘Yellow Balls’ side the output of Yellow Balls increased.

As the technique changes passing 2 balls on each hand, the output also changes because Technology is develop. Example for red balls, the output from the first experiments was 12 balls and on second experiment it has increased to 14 ball. Next yellow balls the output of first experiment was 10 and on the second experiment it has increased to 16 balls. As this, sometimes it increased to 2 times more output than the first experiment. It tells us that If the technology is develop, the amount and Information Technology will increase and more develop.

 

Work Sited:

-The Definition about PPF Model ‘http://www.investopedia.com/terms/p/productionpossibilityfrontier.asp#axzz2AsfjwkYy’

-”Scarcity.” Definition. N.p., n.d. Web. 31 Oct. 2012. <http://www.investopedia.com/terms/s/scarcity.asp>.

-”Economics: Economics Defined.” Economics: Economics Defined. N.p., n.d. Web. 31 Oct. 2012. <http://www.cliffsnotes.com/study_guide/Economics-Defined.topicArticleId-9789,articleId-9722.html>.

- “Digital Divide Picture” http://wireless.ictp.trieste.it/simulator/

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