Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Infrastructure

Question:
What is the reason that the share of power and telecommunication infrastructure is greater in high-income countries?
Options:
With the development share of agriculture shrinks and more service-related infrastructure is needed
With the development share of services shrinks and more agriculture-related infrastructure is needed
With the development share of infrastructure shrinks and more service-related infrastructure is needed
Both 1 and 2
Correct Answer:
With the development share of agriculture shrinks and more service-related infrastructure is needed
Explanation:
In any country, as the income rises, the composition of infrastructure requirements changes significantly. For low-income countries, basic infrastructure services, like irrigation, transport and power, are more important. As economies mature and most of their basic consumption demands are met, the share of agriculture in the economy shrinks and more service-related infrastructure is required. This is why, the share of power and telecommunication infrastructure is greater in high-income countries.