Q. Which one of the following ratios is referred to as everything that has been invested in the past and to the whole income?
- capital-output ratio
- average capital-output ratio
- incremental capital-output ratio
- marginal ratio
Answer: Average capital-output ratio
Capital output ratio is the amount of capital needed to produce one unit of output. For example, suppose that investment in an economy, investment is 32% (of GDP), and the economic growth corresponding to this level of investment is 8%.
No comments:
Post a Comment
What you have to say about this?