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

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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%.

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