Common assumptions concerning the impact of computers on society fail to recognize the complexity of the social settings into which computer technology is introduced or the roles computer applications play in those settings. This paper identifies common ways of conceptualizing computing and points out their weaknesses. The author then discusses five models according to which the world can be viewed, each with its own assumptions about what social goods should be maximized. How these models alter perceptions of the benefits and problems associated with computer applications is illustrated through a discussion of the effects of electronic funds transfer systems on market arrangements, consumer protection, and the privacy of personal financial transactions as those concepts are understood from the five different perspectives. The author next considers the nature of computer literacy and relates it to educators' major models of schooling. The effect of these models on definitions of computer literacy and on the relative usefulness of computer assisted instruction under varying conditions is treated. The author suggests considering how computer instruction relates to a school's established educational value system, rather than concentrating simply on improving computer skills and appreciation, when designing computer education programs. (PGD)