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Home » , , , , » Which one of the following ratios is referred to as everything that has been invested in the past and to the whole income?

Which one of the following ratios is referred to as everything that has been invested in the past and to the whole income?

  By GK Planet Team      
Q. Which one of the following ratios is referred to as everything that has been invested in the past and to the whole income?
  1. capital-output ratio
  2. average capital-output ratio
  3. incremental capital-output ratio
  4. 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%.
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