Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 17: Problem 7

A business columnist for the New York Times estimated that the wealth of \(J . \mathrm{K}\). Rowling, author of the Harry Potter novels, at \(\$ 1.2\) billion. The columnist observed, "Along with other famous authors, entertainers and sports stars, Ms. Rowling has also benefited from globalization and technology advances." What technology advances is he likely referring to? Why would those advances increase Rowling's wealth compared with the wealth of a similarly popular author of, say, the 1960 s?

Short Answer

Expert verified
The likely technology advancements referred to are the emergence of the Internet, online platforms, social media, e-books, and audiobooks. These advancements allowed J.K. Rowling's works to reach a global audience and be available in multiple formats, therefore increasing sales and earnings. Compared to a similarly popular author in the 1960s, these factors enable today's authors to generate considerably more wealth.

Step by step solution

01

Identify potential technologies

The first technology that may come to mind would be the Internet, which includes online shopping platforms like Amazon, digital marketing through social media, YouTube, etc. Moreover, digital platforms like e-books and audiobooks have also enhanced the reach of an author's work. Hence, those tech advances could have contributed to the author's wealth.
02

Compare with the 1960s scenario

In the 1960s, authors did not have the advantage of these technologies. Their books were mainly sold physically and the reach was usually only as large as the distribution capacity allowed. Moreover, they lacked an immediate global platform to promote their work. Thus, they may not have made as much money as authors today.
03

Discern the relation between tech advances and author's earnings

A popular author today, like J.K. Rowling, has more chances to reach a global audience and sell more copies due to the globalizing effect of technology. Moreover, she can earn from different formats of her book: physical, e-books, audiobooks etc. Hence, this increases the potential for generating wealth as compared to authors from the 1960s.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Many firms include on their employment applications a box that job seekers are asked to check if they have ever been convicted of a crime. Some firms automatically reject applicants who check the box. As a result, some people with criminal convictions have difficulty finding a job, which may increase the likelihood that they will commit another crime. Some states and cities have enacted "ban the box" legislation that forbids firms from asking about criminal histories on job applications, although typically the firms are allowed to ask such questions in job interviews. A study by Jennifer L. Doleac of the University of Virginia and Benjamin Hansen of the University of Oregon found that ban the box legislation significantly reduces the probability of employment among young male African-American job applicants. The economists noted that ban the box legislation "does not address employers' concerns about hiring those with criminal records, and so could increase discrimination against groups that are more likely to include recently-incarcerated ex- offenders." Briefly explain why this result might have occurred. Relate your answer to the reasons firms might be more likely to interview an applicant with a white-sounding name even if the applicant's résumé was identical to that of an applicant with a black-sounding name

What are the three most important variables that cause the market supply curve of labor to shift?

Why is the demand curve for labor downward sloping?

Two employers made the following comments about a proposed increase in the federal minimum wage: Dillon Edwards, founder of Parlor Coffee: "[The increase] should definitely be [to] more than $$[\$ 8.75$$ an hour \(] \ldots\) It needs to be at least in double digits." Beth Fahey, owner of Creative Cakes: "If you raise the minimum wage ... I can't raise everybody. If I do, the price of a doughnut is going to be $$\$ 3$$ and nobody's going to buy it." Briefly explain for which employer the marginal revenue product of labor is likely to be greater. Source: Leslie Josephs and Adam Janofsky, "As Minimum Wages Rise, Smaller Firms Get Squeezed," Wall Street Journal, June \(11,\) \(2015 .\)

What is a monopsony?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free