how does information technology affect economic decision making?

Answer 1

It improves the avaialbility and quality of information on which decisions can be taken. Even more important, it democratises th availability of information. Because of IT, for example, I as an individual can get almost as much info about what's going on in the stockmarket as the professionals. Similarly, if a decision taker needs to brief themselves about, for example, the market for hosiery in India, they can get a good deal of info through the Web and won't need to visit, or even talk to people in, India unless some really cost-important decision has to be taken based on getting it right.

Another thing is that information can easily be shared within a business.

A third truth is that real-time, or near-real-time innfo is available when it can be.

In all cases the main effect is, or at least should be, that decisions are taken on a better-informed basis, and markets move closer to the economists' ideal of "perfect competition".

Answer 2

In todays modern society alot of things relating to the economy are dependent on IT and people are relaying on it more and more....stocks and shares would not work without it.....