Short Answer 
Information Technology (IT) involves the creation, processing, storage, and sharing of electronic data, including key components like computers, software systems, and data security. The economic impact of IT has improved resource allocation, enhanced decision-making, and increased employment opportunities in the sector, leading to growth in areas such as software development, network administration, and cybersecurity.
Step 1: Understanding Information Technology
Information Technology (IT) encompasses everything related to computers and computing technology. This includes the creation, processing, storage, and sharing of electronic data. Key components of IT involve:
- Computers and software systems
- Network connectivity
- Data security measures
- Infrastructure for supporting IT services
Step 2: Economic Impact of IT
The rise of IT has fundamentally transformed the economy in several ways. With improved data processing capabilities, resource allocation has become more efficient. The effects include:
- More informed allocation of resources by economists
- Enhanced decision-making in government economic policies
- Growth in employment opportunities within the IT sector
Step 3: Recognizing Growth in IT Employment
As the demand for IT services continues to escalate, job opportunities in this field have significantly expanded. This has led to a boost in the economy by providing more positions and training in:
- Software development
- Network administration
- Data analysis
- Cybersecurity and IT support