Final answer:
True. Infrastructure investments typically have a long-term payback due to their scale and the benefits they provide over time, even though political factors can impact cost-effectiveness and decision-making. Option A is correct.
Step-by-step explanation:
Infrastructure investments typically have a long-term payback. This is because infrastructure projects, such as the construction of roads, bridges, and public buildings, can require a lot of capital and time to complete. Though they may not immediately lead to economic returns, they can provide significant benefits over time through improved efficiency, increased economic activity, and better quality of life.
It’s also important to consider that the decision-making process surrounding infrastructure investments can be influenced by political factors, where projects are sometimes executed in a way that is excessively costly due to local political interests. Additionally, some necessary investments may not be made because they lack political popularity, despite making economic sense.
The effects of many growth-oriented policies related to infrastructure investments will be seen gradually over time. A well-educated population, solid physical capital investments, and the implementation of new technologies all combine to deliver gradual but sustained growth.