Infrastructure contributes to economic development of a country by:

Increasing the productivity of factors of production and improving the quality of life of it's people

The correct answer is option 1: Increasing the productivity of factors of production and improving the quality of life of it's people

Infrastructure contributes to economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people. Inadequate infrastructure can have multiple adverse effects on health. Improvements in water supply and sanitation have a large impact by reducing morbidity (meaning proneness to fall ill) from major waterborne diseases and reducing the severity of the disease when it occurs.