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Question

An impact of increased infrastructure investment on the economy?

1.It can lead to a decrease in economic growth.

2.It can provide a critical push to the potential growth of the economy.

3.It can lead to an increase in productivity and efficiency.

Which of the statements given above is/are correct?

A 1 only Correct Answer Incorrect Answer
B 1 and 2 only Correct Answer Incorrect Answer
C 2 and 3 only Correct Answer Incorrect Answer
D 1 and 3 only Correct Answer Incorrect Answer
E 1, 2 and 3 Correct Answer Incorrect Answer

Solution

Increased infrastructure investment can actually lead to an increase in economic growth rather than a decrease. Infrastructure is the backbone of any economy, and its development can lead to several positive economic impacts. Hence, statement 1 is not correct. Infrastructure such as roads, bridges, and public transportation systems can make it easier and faster for businesses to transport goods and for workers to get to their jobs. This can increase productivity and efficiency, which can lead to higher economic growth. Hence, statements 2 and 3 are correct.

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