Which of the following statements regarding infrastructure is correct?

The correct answer is Infrastructure is a tangible asset.

Key Points

• Infrastructure refers to the fundamental facilities and systems serving a country, city, or other areas, including the services and facilities necessary for its economy to function.
• Infrastructure includes tangible assets such as roads, bridges, tunnels, water supply, sewers, electrical grids, and telecommunications.
• Effective infrastructure contributes directly to the production of goods and services by enabling the efficient functioning of an economy.
• Infrastructural development plays a crucial role in the growth and development of an economy, enhancing productivity and connectivity.

Additional Information

• Types of Infrastructure: Infrastructure can be classified into different types such as transportation, energy, water, telecommunications, and social infrastructure.
• Economic Impact: Good infrastructure reduces the cost of production and transportation, improves productivity, and enhances trade and connectivity.
• Social Infrastructure: Includes facilities that support social services such as schools, hospitals, and recreational facilities, contributing to the quality of life.
• Investment in Infrastructure: Governments and private sectors invest in infrastructure projects to stimulate economic growth and development.
• Challenges: Infrastructure development faces challenges such as funding, maintenance, environmental concerns, and the need for sustainable and resilient infrastructure solutions.