Download The Impact of the Internet on Economies: A Look at Its Growth, Usage, and Economic Gains - and more Study notes Microeconomics in PDF only on Docsity! 1 Gwartney, Stroup, Sobel, and Macpherson “Economics: public & private choice” 10th ed. To Accompany “Economics: Private and Public Choice 10th ed.” James Gwartney, Richard Stroup, Russell Sobel, & David Macpherson Slides authored and animated by: James Gwartney, David Macpherson, & Charles Skipton Full Length Text — Micro Only Text — Part: Part: Topic: Topic: Next page Macro Only Text — Part: Topic: Copyright 2003 South-Western Thomson Learning. All rights reserved. The Internet: How Is It Changing the Economy? 6 5 2 2 5 2 Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. Use of the Internet Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. • The use of the Internet has grown dramatically in the past decade and is now a worldwide phenomenon. Use of the Internet 2 Gwartney, Stroup, Sobel, and Macpherson “Economics: public & private choice” 10th ed. Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. The Growth of the Internet 30 25 20 15 10 5 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Millions of Internet Web Sites • The number of Web sites rose dramatically between 1992 and 2001. By 2001, there were 30 million Web sites. Source: www.zooknic.com. Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. Who Uses the Internet? Europe 30 % United States 5 % Canada 3 % Africa 1 % Asia 28 % Latin America 5 % Middle East 1 % Geographic Distribution of the Internet • About one-third of internet users live in the United States. • Nearly another third reside in Europe. • Slightly more than a quarter are in Asia. Source: www.nui.ie Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. Potential Gains from the Internet 5 Gwartney, Stroup, Sobel, and Macpherson “Economics: public & private choice” 10th ed. Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. Labor Markets and the Internet Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. • The Internet is rapidly becoming an integral part of the job search process. Labor Market and the Internet • The reduction in the cost of information through the Internet will tend to lower the rate of unemployment and improve the match between jobs and employee skills. • The Internet also makes it possible for many employees to work at home and at other locations. Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. Questions for Thought: 1. What impact will the Internet have on the efficiency of markets? Explain. How is the Internet likely to influence productivity and the growth of output in the years immediately ahead? 2. The share of airline tickets bought over the Internet has grown rapidly, while the percent of groceries purchased online remains minuscule. What factors likely explain this difference? 6 Gwartney, Stroup, Sobel, and Macpherson “Economics: public & private choice” 10th ed. Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. Questions for Thought: 3. Instead of being connected to the Internet with slow dialup modems, many people will soon have fast broadband connections to the web. How is this change likely to affect product markets? 4. Indicate how the production, marketing, and distribution of each of the following are likely to be influenced by the development of the Internet: (a) popular music, (b) movies, (c) automobiles, (d) commercial employment agencies, (e) beautician services, and (f) health care. Briefly explain your response. Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. End Special Topic 2
