‘Investment in infrastructure contributes to the economic development of a country.’ Justify the given statement with a valid argument.

CBSE Sample Question Paper, Class 12 ECONOMICS Term 2 Question - ‘Investment in infrastructure contributes to the economic development of a country.’ Justify the given statement with a valid argument.

‘Investment in infrastructure contributes to the economic development of a country.’ Justify the given statement with a valid argument.

Answer.
The given statement is true; infrastructural development in an economy increases productivity, induces higher investment, facilitates employment, and generates more income. With the rise in income the quality of life of the people improves. Thus, conclusively we may say that infrastructure contributes to the economic development of a country.