From the e-Activity, explain the most important information you would require on which to base sound economic judgments. Explain your rationale.

Inflation happens when the government increases the amount of money circulating in society while the amount of goods in circulation is less. When occurs, the dollar value goes down and prices generally rise in order to compensate loses (The Money Alert). Inflation may cause individuals to spend less therefore, lowering the economy. Some people may try to borrow money through loans, which is increasingly difficult during inflation periods. Banks do not like to give out money during inflation periods because the money they receive back may not be worth the same amount (The Money Alert). In today’s society, inflation has been a huge problem. Important information one would require to make sound economic judgment is if you are an investor, maybe consider inflation protection for your portfolios. If you do not invest, the best thing to do is to be prepared for times when prices may become inflated. More money may be spent on products, but the money will be available if you have enough money saved.

Assess the various forms of organizing and processing information to determine which is the most difficult to get correct. Explain your rationale.

There are different ways in which people organize and process information. It is usually done by using our five senses and is stored into our memories. Those memories then become our experiences. For example, when a person hears a “bark”, it is automatically assumed what is heard is a dog. Experiences can be misleading when it comes to processing information. There are some experiences that people have never had and this could cause a person to make the wrong decision. This is why I believe experience is difficult to get correct when having to make a sound decision