MIS 301 Study Guide
Chapter 6 focuses on computer hardware, Moore’s Law, and how rapid improvements in computing affect business strategy and innovation. As computing becomes faster and cheaper, firms gain new ways to create value, analyze data, and redesign processes. The chapter also explains how computers work, why semiconductor manufacturing matters, and why e-waste is becoming a growing global problem.
eWaste is discarded electronic technology, including old phones, computers, and other devices. It creates environmental problems because it often contains toxic materials such as lead, cadmium, and mercury.
The Internet of Things refers to physical devices with sensors, software, and internet connections that allow them to collect and exchange data. Examples include smart watches, smart thermostats, and connected home devices.
Konana’s model shows that software exists in layers, including hardware, operating systems, database management systems, middleware, enterprise applications, and consumer applications. Because each layer depends on the ones below it, the ecosystem can create switching costs and lock-in.
Memory is temporary storage that holds data and instructions the CPU is actively using. It is fast, but it does not keep information when the power is turned off if it is volatile memory.
A microprocessor is a computer’s central processing unit placed on a single chip. It executes instructions, performs calculations, and helps coordinate the work of the entire system.
Moore’s Law is the observation that the number of transistors on a chip tends to double about every 18 to 24 months, leading to rapid growth in computing capability and lower cost over time.
Non-volatile storage keeps data even when power is turned off. Examples include SSDs, flash drives, and hard drives.
Price elasticity describes how strongly demand changes when price changes. In technology, demand for computing is highly elastic, meaning that when computing becomes cheaper, people quickly find more ways to use it.
Quantum computing uses qubits instead of traditional bits. It has the potential to solve certain very complex problems much faster than normal computers, but it is not yet broadly practical for everyday commercial use.
Storage is long-term data retention. It keeps files, software, and saved information even when the computer is powered off.
Volatile memory loses its contents when power is removed. RAM is a common example.
Moore’s Law helps explain why computing improves so quickly over time. Even though transistor shrinking is reaching physical limits, computing capability is still increasing rapidly. This matters to managers because improvements in computing can change competition, customer expectations, and available business tools.
As computing gets cheaper, demand rises sharply because people and businesses find new uses for it. This is why lower-cost computing has supported things like cloud services, AI tools, and wearable devices. Managers are often surprised by how quickly cheaper technology changes industries.
A computer can be understood as a system made up of a CPU, memory, storage, and input/output devices. The CPU processes instructions, memory holds what is being used right now, storage keeps data for later, and input/output devices move data into and out of the system.
Computer chips are built using semiconductors and transistors. A transistor acts like a switch that can be on or off, representing 1s and 0s. Those binary digits, called bits, are the foundation of all digital computing.
Most modern devices use multicore processors, which place multiple computing cores on one chip. This improves performance while using less power and producing less heat than relying on a single very fast core. Parallel processing extends this idea by splitting work across many processors at the same time.
Many complex tasks are now offloaded to the cloud, especially AI processing. This makes powerful computing available without requiring every user to own advanced hardware. However, cloud use introduces latency, which is delay, and network quality also depends on bandwidth, which is the amount of data that can move at once.
Storage is measured in bytes, while transfer speed is measured in bits per second. Since 8 bits equal 1 byte, internet speeds in Mbps look much larger than actual download speeds in MB/s. This is an important distinction when evaluating device storage or internet plans.
A fab is a semiconductor manufacturing plant. These facilities are extremely expensive to build, require huge amounts of purified water and power, and are central to global technology supply chains. Because advanced chip production is concentrated in a small number of firms and locations, chip manufacturing is also a geopolitical issue.
Rapid hardware innovation leads many devices to become obsolete quickly, which contributes to growing levels of e-waste. Recycling is difficult because electronics are small, complex, and often contain toxic materials. Some companies now use robots and AI to improve recycling efficiency.
Disney’s MagicBand shows how hardware, apps, and internal systems can work together to create value. The wearable lets guests enter parks, unlock hotel rooms, pay for items, and receive more customized service. Disney also uses the data from the system to improve scheduling, staffing, and park operations.
A startup launches a new AI study tool for college students. Instead of requiring each user’s laptop to perform all of the heavy calculations, the company sends the hardest processing tasks to remote servers over the internet. The app works well, but some users notice a short delay before responses appear.
Which concept best explains that delay?
Correct answer: B
Latency is the time delay between sending a request and receiving a response. In cloud computing, data must travel over the internet, which can create noticeable delay. Bandwidth is about how much data can move at once, not the response time itself.
A company upgrades its new laptops from a single-core processor to a multicore processor. Employees notice they can run video meetings, spreadsheets, and browser tabs at the same time with better performance and less overheating.
Which concept best explains this improvement?
Correct answer: C
Multicore processors place multiple processing cores on a single chip, allowing several tasks to be handled more efficiently at once. This often improves speed while reducing heat and power use. The other options describe different business or computing ideas.
Over time, cloud storage, AI tools, and wearable devices have become more common as computing power has gotten cheaper. Businesses and consumers keep finding new ways to use technology whenever the cost falls.
Which concept best explains this pattern?
Correct answer: A
Price elasticity of demand explains why lower prices lead to higher demand. In technology, demand for computing is highly elastic, so falling costs lead to many new uses. The other answer choices do not explain market demand behavior.
A student compares two internet plans. One offers high Mbps for streaming movies, while the other has lower ping times for online gaming. The student wants the smoothest experience in fast reaction games.
Which network feature matters most in this case?
Correct answer: B
Online gaming depends heavily on low latency because game actions must be transmitted almost instantly. High bandwidth is useful, but gaming usually does not send huge amounts of data. Storage and volatility are not the key issues here.
A phone manufacturer releases a slightly improved model every year. Many customers replace their phones often, even when the old device still works. Environmental groups criticize the company because these old devices are difficult to dispose of safely.
Which issue is most directly connected to this problem?
Correct answer: B
eWaste refers to discarded electronic devices and is a major environmental issue tied to rapid hardware replacement. Many devices contain toxic substances and are difficult to recycle correctly. The other answers are unrelated to disposal problems.