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Infrastructure

Definition

Infrastructure refers to the basic physical structures and facilities needed for the functioning of a society or economy. This includes roads, bridges, airports, water supply systems, and communication networks.

Analogy

Imagine infrastructure as the backbone of a city. Just like how our bones provide support and enable us to move around efficiently, infrastructure provides essential support for economic activities by facilitating transportation, communication, and commerce.

Related terms

Public Goods: Goods or services that are non-excludable (cannot be denied to anyone) and non-rivalrous (one person's use does not diminish its availability for others), often provided by governments.

Capital Stock: The total value of physical assets (such as buildings, machinery, equipment) used in production within an economy.

Investment: The act of allocating resources (money, time) with the expectation of generating future benefits or returns. In terms of infrastructure, investment refers to spending on building or improving physical structures.