Problem Set 3
i) Apple's model has a number of advantages. In terms of business model, Jobs
approached CD makers at a time when they had been battered by file sharing so they
were ready to buy into a low price. Thus he is able to offer enormous variety
1. Technology changes demand for labor through two mechanisms:
a. Substituting for some human tasks b.
Complementing other human tasks
2. For most of economic history, technical change has redivided physical tasks between
humans and machines. With
Problem Set 1
1. In the matrix below, each coefficient a ij refers to the number of units of product j
produced in country i in one person-day of labor.
(a) Assume both economies are at full employment so that producing more
Problem Set 2
1) (a) Here is one way to proceed: look at the means and ranges of these variables for the
three species. We see that setosa is the smallest of these species; in fact, the maximum
petal length and petal width for setosa are smaller than the
1. Review basic trends in occupation, industry, and the nature of work.
2. In terms of industry, basic trend in all industrial economies has been a shift of
employment over time of employment from agriculture to manufacturing to
services. The shift
1. Since much of the computer literature in economics is associated with skillbiased technical change, this week is devoted to exploring what this term
means in greater detail.
2. Griliches is one of the earliest pieces to show that in todays econo
1. During this week, we take up a question raised at the beginning of the course
the debate over the role of computers in the post 1996 revival of
productivity. Buried in this debate are two related sub-questions:
a. How much of computers contrib
1. A central idea of the course that at this moment, computers are strongest
in performing those tasks where the required information processing can
be described in rules-based logic, a set of If-Then-Do rules in which an
action is specified for ea
1. During this week, we examine the impact of computers on B2C markets and
B2B markets. Begin by exploring the idealized market displayed in basic
microeconomics products produced in fully competitive markets, all agents
with perfect information, c
1. At this point, we return to cognition to ask: In a computerized world, how do
we describe the human skills that the market still values?
2. We start with two already established facts:
a. While computers dominate humans in the execution of rules