IT REVIWER Modem- short for

Computer- electronic device that prcess “modulate/demodulate”. Two modems:

data, coverting it into meaningful sending and receiving. A sending
information. modem modulates digital signals into
Hardware- mechanical devices that analog signals for transmission over
make up the commputer are called phone lines. A receiving modem
hardware. Harwdware is any part of the demodulates the analog signals back
computer you can touch. into digital signals.
Software- a set of instructions that Types of Computers based on Data
makes the computer perform tasks. Processed:
Software tells the computer what to do. 1. Analog Computers- measures and
Data- consist of individual facts or operates on data that are represented
information that may not make much in the form of continous variables,e.g.
sense to a person. voltage, pressure, temperature etc.
User- refers to the computer operator 2. Digital Computers- represents and
(people). processes data in discrete/numerical
Binary Number System- type of number form, using a binary sytem. It produce
system play in the important role in the discrete ouput.
way computers communicate. 3. Hybrid Computers- combines the
features of both analog and digital
Advantages: Speed, Memory, Storage, computers. It can accept continous,
Hardware reliability and accuracy discrete, or both types of input.
Disadvantages: Information overload,
Cost, Data inaccuracy, Software Networks- a system of interconnected
unreliability. computers, telephones, or other
communications devices that can
Ergonomics- applied science concerned communicate with one another and
with designing and arranging things share applications and data.
people use so that the people and Types of Network:
things interact most efficiently and Local Area Network (LAN)- connects
safely. Science-based discipline that computer and devices in a limited
brings together knowledge from other geographic area, such as one o[ffice,
subjects such as anatomy and building, or a group of buildings close
physiology, psychology, etc. together.
Analog- is a mechanism or device in Wireless Area Network (WAN)-
which information is represented by communications network that covers
continously variable physical quantities. wide geographic area, such as a country
Digital- composed of data in the form of or the world.
especially binary digits. Digital means Metropolitan Area Network-
“Computer-based”. communication network covering a city
Analog Technology- electronic or a suburb. The purpose is often to
transmission of telephone, radio, bypasslocal telephone companies when
television, and cable-TV signals have accessing long-distance services.
been considered analog too. Home Area Network- uses wired, cable,
Digital Technology- converts the or wireless connections to link a
information into a number (digits) and households digital devices-not only
displays and stores it.
multiple computers, printers, and communicate directly with one another
storage devices. without relying on a server.
Personal Area Network- it doesn’t use
wires or cables, a personal are network INTRANET- FOR INTERNAL USE ONLY.
(PAN) uses short-range wireless EXTRANET- FOR CERTAIN OUTSIDERS
technology to connect an individuals VIRTUAL PRIVATE NETWORKS- uses a
electronics, such as cellphones, MP3 public network (usually the internet) to
player, printer. connect remote sites. Company
Virtual Private Network (VPN)- uses a intranets, extranets, and LANs can all be
public network to connect remote sites parts of a VPN.
or users. The VPN uses “virtual”
connecctions routed through the Components of a network
Internet from the business private Wired and/or wireless connections-
network to the remote site or employee. networks use a wired or wireless
conection system. Wired connections
Topology- is the physical way in which may be twisted-pair wiring, etc.
computers are interconnected. It is the Hosts&Nodes- network has a host
logical layout, or shape, of a network. computer, a mainframe, or a midsize
Star Topology- devices are connected central computer that controls the
to a central computer called HUB. A Star network. A node is any device attached
network is particularly appropriate for to a network.
organizations that require a centralized Packets- a fixed-length block of data for
database or a centralized processing transmission.
facility. Protocols- a set of conventions
Bus Topology- simgle network cable governing the exchange of data
runs in the building or campus. between hardware and/or software
Ring Topology- network cable passes components in a communications
from one node to another until all network.
nodes are connected in the form of a Network linking devices- networks are
“loop or ring” often linked together, but the means for
Mesh Topology- general topology for a connecting them are the following:
wide are network. It may be fully Hub- a common connection point for
connected or conneceted with only devices in a network- a place of
partial links. convergence where data arrives from
Tree Topology- connects one-star one or more directions and is forwarded
network to the other star network. out in one or more other directions.
Hybrid Topology- combination all the Switch- device that connects computers
various types of topologies. to a network. It sends messages only to
a computer that is the intended
Structure of Networks recepient.
Client/Server Networks- networks Bridge- interface used to connect tha
consists of clients, which are same types of networks.
microcomputers that request data, and Gateway- interface permitting
servers, which are computers used to communication between dissimilar
supply data. networks. They are used to
Peer-to-Peer Networks - all interconnect networks, including those
microcomputers on the network
with different communications radio waves to transmit voice and
protocols. digital messages.
Router- special computer that directs Microwave Radio- transmits voice and
messages when several netwroks are data at 45 megabits per sec. Through
connected. the atmosphere as super high-
The Backbone- consists of the main frequency radio waves called
highway- including gateways, routers, microwaves, which vibrate at 2.4 billion
an other communications equipments. hertz per sec or higher.
Electromagnetic Spectrum- basis for all
Wired Communications Media the telecommunications signals, carried
Twisted-Pair Wire- consists of two by both wired and wireless media.
strands of insulated copper wire, X-Rays- used to view inside of bodies
twisted around each other. and objects.
Coaxial Cable- high frequency Microwaves- used in cooking, radar,
transmission cable that consits of telephones, and other signals.
insulated copper wire wrapped in a Radio- Used to broadcast radio and
solid or braided metal shield. television.
Fiber-Optic Cable- consits of dozens or Gamma Rays- used in medicine for
hundreds of thin strands of glass or killing cancer cells.
platic that transmit pulsating beams of Visible Light- Make things able to be
light rather than electricity. seen.
Bandwith- is the range, or band of Ifrared- Transmits heat from sun, fires,
frequencies that a transmission medium radiators.
can carry in a given period. Ultraviolet- ABsorbed by the skin used
Narrowband- also known as voice band, in fluorescent tubes.
is used for regular telephone Communications Satellites- are
communications that is, for speech, microwave relay stations in orbit
faxes and data. around the earth.
Broadband- used to transmit high- Geostationary Earth Orbit (GEO)-
speed data and high quality audio and circular orbit 35,785 km above earths
video. equator in which satellites orbit period
Wireless Application Protocol (WAP)- is equal to earths rotation period of
designed to link nearly all mobile 23hrs. And 56 min.
devices to your telecommunication The Medium-Earth Orbit (MEO)- It
carrier’s wireless network and content requires more satellites for global
providers. coverage than does GEO. MEO is the
Infrared Wireless Transmission - sends region of space around the earth above
data signals using infrared-light waves low Earth orbit and below the
at a frequency too low (1-16 megabits geostationary orbit.
per sec.) for human eyes to receive and Low-Earth Orbit (LEO)- satellites may be
interpret. smaller and are much cheaper to launch.
Broadcast Radio- wireless transmission Global Positioning System (GPS)-
medium that sends data over long consits of 24-32 MEO earth-orbiting
distances at up to 2 megabits per sec. satellites continously transmitting timed
Between regions, states, or countries. radio signals that can be used to
Cellular Radio- used for cellphones and identify the Earth location.
wireless modems, using high-frequency
Pagers- known as beepers, for the Commercial Software- also called
sound they make when activated, proprietary software or packaged
pagers are simple radio receivers that software, is software that’s offered for
receive data sent from a special radio sale, such as Microsoft Word, Microsoft
transmitter. Office XP or Adobe PhotoShop.
Analog Cellphones (1G)- known as first- Copyright- exclusive legal right that
generation) cellular service- are prohobits copying intellectual property
designed ‘primarily for communicating without the copyright holders
by voice through a system of ground- permission.
area cells. Software License- a contract in which
Digital Wireless Service (2G)- second- one agrees to give away or resell the
generation- technology digital software.
cellphones began replacing analog Site License- allow the software to be
cellphones during 1990s as used on all computers at a specific
telecommunications companies added location.
digital transceivers to their cell towers. Concurrent- uses licenses allow a
Wireless Digital Services (3G)- third- certain number of copies of the
generation- accept emails with software to be used simultaneously.
attachments, provide internet and web Multiple-user license- specifies the
access, can display color video and still number of people who may use the
pictures, and play music. software.
Wireless Digital Service( WIMAX)- Single-user license- limits software to
latest standard, 4G. Uses the standard use to one user at a time.
known as WiMax, a wireless standard Version- a major upgrade in a software
capable of transmitting at a typical product, traditionally indicated by
range of 6-10 miles up to 20megabits numbers such as 1.0, 2.0, and 3.0- ex.
per sec. 2 types: (One fixed and One Adobe 8.0 and Adobe 9.0.
mobile). Release- may be called an “add” or
5th Generation Wireless Service- “addition”, is a minor upgrade.
designed to be capable of supporting Public-Domain Software- not protected
data transfer for complex home by copyright and thus may be
networks and Internet-enabled duplicated by anyone.
appliances. Shareware- copyrighted software that
Local Area Network- 100-228 feet. Wifi is distributed free of charge. You can try
Standars. it before you buy it.
Personal Area Networks- 30-32 feet. Freeware- copyrighted software
Bluetooth, ultra-wide band, and distributed for free, usually, most often
wireless USB. over the internet.
Home Automation Networks- 100-150 Rentalware- online software users lease
feet. Insteon, Zigbee, Z-Wave standards. for a fee and download whenever they
want.
Application Software- refers to all Pirated Software- obtained illegally, as
programs that enable a dekstop when you get a CD/DVD from a friend
computer, notebook, or smartphone to who has made an illicit copy of a
perform tasks that assists in commercialvideo game.
accomplishing work or facilitating play. Abandonware- does not refer to a way
to obtain software.
Custom Software- created by software Personal Information Manager- Keep e-
engineers and programmers for the mails, contact lists, schedules and
special needs of the company. calendars of appointments.
Entertainment Software- games, etc. Cursor- the movable symbol on the
Personal Software- cookbooks, medical display screen showing where you may
home decoration, etc. next enter data or commands.
Education/Preference Software- Scrolling- means moving quickly upward,
Encyclopedias, Phone Books, etc. downward, or sideways through the
Productivity Software- Word Processing, text or other screen display.
Spreadsheets, Database managers, Word wrap- automatically continues
email. text to the following line when reach
Specialty Software- Presentation the right margin.
Graphics, Video/Audio editing, etc. Inserting- is the act of adding to the
Document Files- created by word document.
processing programs and consists of Deleting- removes text, usually using
documents such as reports, letters, the delete or backspace keys.
memos and etc. Undo command- allowas you to change
Worksheet Files- created by database your mind and restore text that you
management programs and consists of have deleted.
organized data that can be analyzed and Find or Search- command lets you find
displayed in various useful ways. any word, phrase, or number in your
Importing- defined as getting data from document.
another source and then converting it Replace Command- allowas you to
into a format compatible with the replace it with something else
program in which you are currently automatically.
working. Copy- duplicates a file, storing the
Exporting- defined as transforming data second version in a different location in
into a format that can be used in your file system.
another program and then transmitting Cut- allows you to cut out a selection of
it. text or other data and save it to the
Productivity Software- includes word clipboard.
processors, spreadsheets, databases, Paste- allows you to insert data from
presentations, project management, the clipboard into an application.
and personal information management Spelling Checker- for incorrectly spelled
programs. words.
Word Processing- Write, format, and Grammar Checker- highlights poor
print documents and reports. grammar, wordiness, incomplte
Spreadsheets- Enter and manipulate sentebce, etc.
financial data through the use of Thesaurus- presents you with the
formulas. approriate word or alternative words.
Database- Management and connect Template- called a wizard, is a
data between related tables to produce preformatted document that provides
queries, reports, and forms. basic tool for shaping a final document.
Presentation- Create slideshows. Font- a graphical representation of text
Project Management- Manage and that may include a different typeface,
schedule resources among multiple point size, weight, color, or design.
projects.
Line Spacing- distance between lines of Design Templates- these offer formats,
text. Single-spaced or double-spaced. layouts, background patterns, and color
Margins- refer to the spaces between schemes that can apply to general
context and edges. It indicate the forms of content material.
dimensions of the margins- left, right, Content Templates- offer formats for
top and bottom around the text. specific subjects.
Justification- refers to the alignment of SPREADSHEET- digital table with rows
text within margins. It specify how the and columns for organizing, calculating,
letters and words are spaced in each and analyzing data. Data can be entered
line. into cells, calculated using formulas,
Header- a common text (such as a date visualized charts and graphs, etc.
or document name) printed at the top Analyze and Calculate- perform
of every page. complex calculations with ease using
Footer- the same thing printed at the formulas.
bottom of every page. Visualize Data- create charts and graphs
Page Number- used to be automatically to see trends and patterns clearly.
number each page in your document. Organize Information- keep data neatly
Default Setting- are the setting organized and easily accesible.
automatically used by a program unless Streamline Processes- automate
the user specifies otherwise, thereby repititive task to save time.
overriding them. Collaborate- share and edit in real-time
Other Formatting- the user can specify with others.
boarders, or other decorative lines, Formula- instructions for calculations;
shading, tables, and footnotes. Also they define how one cell relates to
users can use graphics. other cells.
Saving- means storing or preserving a Functions- built-in formulas that
document as an electronic file perform common calculations.
permanently- on your hard disk or a CD Recalculation- the process of re-
or any storage. computing values, either as an ongoing
Web Document Creation- most word process as data is entered or afterward,
processing program allowas you to with the process of a key.
automatically format your document What-if Analysis- allowas user to see
into HTML so that they can be used on how changing one or more numbers
the web. cahnges the outcome of the calculation.
Presentation Graphic Software- a
category of software used to create Specialty Software- is an umbrella term
content where information is often for software that is designed for a
represented in agraphical or visual way. specific application of niche.
Slideshow- a presentation of a series of
still images (slides) on a projection
screen or electronic display device,
typically in a prrarranged sequence.
Custom Animations- provides three
types of movements: Entrance,
emphasis, and exit of elements on a
slide itself are controlled by what
powerpoint.
Reviewer Economics utility measures the satisfaction from
Introduction to Utility and Consumer consuming just one more unit.
Preferences
Utility- (satisfaction consumers derive Diminishing Marginal Utility: Introduce
from goods and services) the law of diminishing marginal utility
Utility refers to the satisfaction or The Law of Diminishing Marginal Utility
pleasure that consumers derive from states that as a person consumes more
consuming goods and services. It is a units of a good or service, the additional
measure of how much value or benefit satisfaction (marginal utility) gained
individuals gain from their consumption from consuming each extra unit tends
choices. Utility is subjective, meaning it to decrease, assuming all other factors
can vary from person to person remain constant. In other words, the
depending on their preferences and more of a good you consume, the less
needs. For instance, a cup of coffee pleasure you derive from each
might bring great utility to someone additional unit. This explains why
who enjoys coffee but little to no utility consumers are usually willing to pay less
to someone who doesn't. for additional units of the same good.
In economics, utility is used to explain Example:
how and why consumers make choices • The first slice of pizza may give a high
about what to buy, as they aim to level of satisfaction (high marginal
maximize their satisfaction (utility) utility).
within their available resources, such as • The second slice might still provide
money or time. pleasure, but perhaps less than the first
Total Utility vs. Marginal Utility: (lower marginal utility).
• Total Utility (TU): This refers to the • By the third or fourth slice, the
total amount of satisfaction or benefit a consumer might experience even less
consumer derives from consuming a satisfaction, or they might not want any
certain quantity of goods or services. As more at all.
the consumer continues to consume
more units of a good, their total utility Budget Constraints and Utility
increases, though not always at the Maximization
same rate. Budget Line
• Marginal Utility (MU): This is the The budget line represents all the
additional satisfaction or benefit gained combinations of two goods that a
from consuming one more unit of a consumer can afford given their income
good or service. It is the change in total and the prices of those goods. It shows
utility resulting from consuming one the maximum amount of one good that
additional unit. a consumer can buy for a given amount
If eating the first slice of pizza gives you of the other good, based on their
a total utility of 10, and eating the budget. The budget line is a straight line
second slice increases your total utility that reflects the trade-offs between the
to 18, the marginal utility of the second two goods.
slice is 8 (since MU = 18 - 10 = 8).
The key difference is that total utility Components of the Budget Line:
represents the overall satisfaction from • Income (I): The total amount of
all units consumed, while marginal money the consumer has available to
spend.
• Prices of Goods (P1 and P2): The workers more easily compared to
prices of the two goods being adjusting capital or machinery.
considered. For example, if a consumer
is deciding between spending on apples Production Decisions in the Short-Run:
(P1) and oranges (P2), the budget line In the short run, since at least one input
depends on how much each good costs. is fixed, firms focus on adjusting
The budget line connects these two variable inputs to meet changes in
points, showing all the combinations of production levels. The fixed inputs set a
apples and bananas the consumer can limit on how much can be produced
afford. Any point on this line represents efficiently in the short run.
a combination where the consumer For example, if a company experiences
spends exactly $100. an increase in demand for its product, it
Example of Combinations Along the can increase the number of workers
Budget Line: (variable input) but is limited by the
1. Combination 1: 25 apples and 12.5 capacity of its factory (fixed input). As a
bananas (spending $50 on apples and result, the company can only increase
$50 on bananas) output up to a certain point before
2. Combination 2: 30 apples and 10 experiencing inefficiencies.
bananas (spending $60 on apples and
$40 on bananas) Diminishing Marginal Returns
3. Combination 3: 10 apples and 20 The law of diminishing marginal returns
bananas (spending $20 on apples and is a key concept in short-run production.
$80 on bananas) It states that as more units of a variable
input (like labor) are added to a fixed
Production and Costs input (like capital or land), the
additional output (marginal product)
Short-Run Production: produced from each additional unit of
Refers to a period during which at least input eventually decreases, assuming all
one factor of production (such as capital, other inputs remain constant.
machinery, or land) is fixed and cannot • Marginal Product (MP): The
be changed. The variable inputs, like additional output that results from
labor or raw materials, can be adjusted adding one more unit of a variable input.
to meet production needs. Initially, adding more workers to a
• Fixed Inputs: These are inputs that factory might lead to a significant
cannot be changed or adjusted in the increase in production because the
short run. workers can efficiently use the available
Ex. A factory’s physical building or machines. However, as more workers
machinery is considered fixed in the are added without increasing the
short run. A company can’t quickly number of machines (fixed input), each
expand its factory or add new machines, additional worker has less equipment to
making them short-run fixed inputs. work with, and the additional output
• Variable Inputs: These are inputs that they produce decreases.
can be changed or adjusted in response Ex. • A bakery with 3 ovens can produce
to production needs. 100 loaves of bread with 5 workers.
Ex. Labor is often considered a variable • If the bakery hires 5 more workers
input, as a company can hire or lay off (for a total of 10 workers), production
may increase, but not proportionally
because only 3 ovens are available. The Economies of Scale:
marginal product of the additional Economies of scale occur when
workers will start to diminish as they increasing the scale of production leads
have fewer ovens to use. This results in to lower average costs.
a diminishing marginal return because, Diseconomies of Scale:
after a certain point, adding more labor Diseconomies of scale occur when
leads to smaller increases in total increasing the scale of production leads
output. Eventually, the firm might even to higher average costs.
experience negative returns, where Constant Returns to Scale:
adding more workers actually decreases Constant returns to scale occur when
efficiency. increasing the scale of production does
Long-Run Production: not affect the average cost of
All inputs are variable, meaning firms production.
can adjust all factors of production,
including capital, land, and labor. This Perfect Competition and Market
gives firms greater flexibility in their Structures
production decisions. Introduction to Perfect Competition
• No Fixed Inputs: In the long-run, Perfect competition is a market
there are no fixed inputs; firms can structure where no single buyer or
expand their factory size, invest in new seller can influence the market price.
technology, or enter new markets. Prices are determined by the
Because all inputs are variable, the firm interaction between total supply and
can fully adjust its production processes demand.
to meet changes in demand.
Key Characteristics of Perfect
Production Decisions in the Long-Run: Competition:
In the long-run, firms can plan for larger 1. Many Buyers and Sellers:
expansions by adjusting their entire -No one has enough power to influence
production capacity. If demand prices individually.
increases over time, a firm might -Prices reflect the balance between
choose to build a larger factory, overall supply and demand.
purchase more machinery, or invest in 2. Homogeneous Products:
better technology to meet demand -All firms offer identical products.
efficiently. In the long-run, firms also -Consumers choose based solely on
aim to optimize their production by price since products are perfect
achieving economies of scale, where substitutes.
increasing the scale of production leads 3. Free Entry and Exit:
to lower average costs per unit. This -Firms can easily enter or leave the
contrasts with the short run, where market without barriers.
firms may experience inefficiencies due -Long-term profits are minimized as
to fixed inputs. new competitors enter when profits rise,
Marginal Cost (MC): and firms exit if losses occur.
Marginal cost is the additional cost of 4. Perfect Information:
producing one more unit of output. It -Everyone has full knowledge of prices
measures how total costs change as and product availability.
output increases by a small amount.
-Firms cannot charge higher than the
market price because buyers are aware Productive Efficiency
of alternatives. Productive efficiency means that firms
produce goods at the lowest possible
Price-Taking Firms: cost.
• Firms in perfect competition have no In perfect competition, firms are
control over prices and must accept the pressured to reduce costs. Only the
market price. most efficient producers, who can make
• Prices are set at the market goods at the lowest cost, will survive in
equilibrium, where total supply equals the long run.
total demand. Individual firms'
production decisions do not significantly Representation
affect the market price. • Allocative Efficiency (P = MC): On a
How Firms Accept the Market Price: graph, the firm produces where the
• In a perfectly competitive market, price equals the marginal cost, ensuring
prices are determined by the that the quantity produced matches
equilibrium point, where total supply consumer demand.
from all firms meets total demand from • Productive Efficiency (P = Minimum
all buyers. ATC): Firms operate at the lowest point
• A firm’s individual decision to produce of the average total cost curve, meaning
more or less has no significant impact they produce goods at the cheapest
on this price because its share of the possible cost.
market
Characteristics of Monopolies:
A monopoly exists when a single firm
Efficiency in Perfectly Competitive dominates the entire market for a
Markets (Simplified) product or service, without any close
In perfectly competitive markets, substitutes. Key characteristics include:
efficiency means that resources are • Single Seller: The monopolist is the
used in the best way possible to only provider, giving it significant
maximize the benefits for both control over the price.
consumers and producers. This is • Unique Product: There are no close
achieved through allocative efficiency substitutes for the product, meaning
and productive efficiency. consumers have limited alternatives.
• Price Maker: Unlike in perfect
Allocative Efficiency competition, the monopolist can set its
Allocative efficiency happens when price, often at a level that maximizes
goods are produced at a quantity that profits.
matches what consumers want, and the • Restricted Output: The monopolist
price equals the cost of making one may limit production to keep prices
more unit (P = MC). higher than in competitive markets.
In perfect competition, prices reflect Barriers to Entry:
both what consumers are willing to pay Monopolies are protected by barriers
and the cost of producing the goods. that prevent other firms from entering
This balance ensures that no resources the market. These barriers include:
are wasted on producing goods that
people don’t want.
• Legal Barriers: Patents, copyrights, or meaning resources are not allocated
government regulation may grant efficiently.
exclusive rights to the monopolist. • Productive Inefficiency: Monopolists
• Control of Key Resources: If a firm may not produce at the lowest possible
controls a critical resource needed for cost (P > Minimum ATC), leading to
production, competitors cannot enter higher costs for consumers.
the market. • X-Inefficiency: Because monopolies
• Economies of Scale: Large face no competition, they may lack the
monopolistic firms may operate so incentive to minimize costs and
efficiently that new competitors cannot innovate, further contributing to
compete with their low costs. inefficiency in the market.
• Brand Loyalty: Strong customer
loyalty and established brands can
discourage new entrants from
competing.

Price Discrimination:
Monopolists may engage in price
discrimination, which involves charging
different prices to different groups of
consumers based on their willingness to
pay. Three degrees of price
discrimination are:
• First-degree (Perfect): Charging each
customer the maximum price they are
willing to pay.
• Second-degree: Offering discounts for
bulk purchases or charging different
prices based on the quantity bought.
Third-degree: Charging different prices
to different demographic groups (e.g.,
student discounts, senior citizen
discounts). This strategy allows
monopolists to increase profits by
capturing more consumer surplus.

Inefficiency in Monopolistic Markets:

Monopolies often result in market
inefficiency, particularly when
compared to perfectly competitive
markets:
• Allocative Inefficiency: Monopolies
produce less than the socially optimal
output because they restrict supply to
raise prices, leading to a deadweight
loss. In this case, the price charged is
higher than the marginal cost (P > MC),