Why is infrastructure referred to as a ‘universal intermediate’?

Correct option is C

The correct answer is (c) It is used in the production of nearly all goods and services
Explanation:
• Infrastructure is termed a universal intermediate because it is essential for all sectors of the economy.
• It supports the production and distribution of goods and services.
• Key infrastructure—such as power, transport, communication—forms the backbone of economic activity.
• Without infrastructure, industries cannot operate efficiently.
• Thus, infrastructure indirectly contributes to economic growth, productivity, and development.
Information Booster:
• Infrastructure can be economic (transport, power) or social (health, education).
• It reduces costs of production by improving efficiency.
Additional Knowledge:
(a) It is the most profitable sector – Profitability is not the defining feature.
(b) Universally available – Infrastructure varies across countries.
(d) Connects urban and rural areas – A function of infrastructure, not the reason it is universal.