Final answer:
The statement is false; information redundancy refers to the duplicate information in a system, not a comparison between average and maximum information amounts. Information overload happens when one has more information than can be processed, impacting decisions.
Step-by-step explanation:
The statement provided is false. Information redundancy refers to the presence of duplicate information within a system, rather than the percentage difference between average information and theoretical maximum. Information overload is a related concept that describes the situation where an individual is exposed to more information than they can process, leading to suboptimal decision-making.
Economists refer to the information people base their decisions on as imperfect because it seldom includes all the data necessary for making perfect decisions. In the Information Age, we are constantly bombarded with vast amounts of information, which can result in information overload. Despite this, individuals must still make numerous decisions daily with the information at hand.