NECO 2003 Economics · Question 22
In economics, electricity, water supply, communication networks, road, etc are known as
Options
- A.capital structure
- B.development induces
- C.development projects
- D.infrastructural facilities
- E.project growth
Answer: D. infrastructural facilities
Explanation written with AI and checked against the answer key
Step 1: Analyze the question The question asks for the general economic term for electricity, water supply, communication networks, roads, etc.
Step 2: Explain the concept In economics, infrastructure (or infrastructural facilities) means the basic physical and organizational structures and services that an economy needs in order to function and grow. They are usually provided by the government, or by the government working with private investors. Examples include:
- Power/electricity
- Water supply
- Roads, railways, ports, and airports
- Telecommunications networks
These facilities support production and trade in all sectors, and they make private business activity easier and cheaper.
Step 3: Evaluate the options
- A. Capital structure: This refers to how a firm finances its operations (debt versus equity). It has nothing to do with physical services.
- B. Development induces: This is not a standard economic term.
- C. Development projects: These are specific undertakings, such as building a particular dam. The term does not name the general category of basic services.
- D. Infrastructural facilities: This is the correct term for the basic services and structures that support economic activity.
- E. Project growth: This is not a standard economic term.
Step 4: Answer The correct answer is D. infrastructural facilities.
Tip: Think of "infra" as meaning "below" or "underlying". Infrastructure is the foundation that everything else in the economy stands on. If a question lists roads, power, water, and communication, the answer is almost always "infrastructure".
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