Question

Which of the following points indicates that economic growth and infrastructure development are related to each other?

Options

• Infrastructure developments such as transport, power, finance, etc expand the size of markets and improve productivity significantly.

• Growth increases demand of infrastructure.

• Consequently, in UDCs, basic infrastructure such as water, irrigation is most important. In developing economies, demand for transport grows fast.

• All of the above

Answer 1

All of the above

Explanation:

How Infrastructure Promotes Growth: Adequate power, water transportation, and other infrastructure may lead to optimal asset use. Infrastructure advances in areas such as transportation, energy, and finance, among others, greatly increase market size and productivity. Infrastructure facilitates the adoption of modern technology across all industries. Infrastructure spending and GDP growth have a close relationship. Infrastructure services account for around 6.5 percent of total value added in UDCs, 9% in emerging nations, and 11% in industrialised countries. Infrastructure development is critical for not only economic growth, globalisation, and manufacturing technology innovation, but also for poverty alleviation. How Does Infrastructure Development Aid Growth? Infrastructure demand rises as the economy expands. People will obviously need more transportation, communication, energy, transportation, and other services as their income rises. As a result, basic UDCs.