McqMate
| Q. |
Capital : Output Ratio of a measures - |
| A. | its per unit cost of production |
| B. | the amount of capital invested per unit of output |
| C. | the ratio of capital depreciation to quantity of output |
| D. | the ratio of working capital employed to quantity of output |
| Answer» B. the amount of capital invested per unit of output | |
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Explanation: Capital output ratio is the ratio of capital used to produce an output over a period of time. This ratio has a tendency to be high when capital is cheap as compared to other inputs. For instance, a country with abundant natural resources can use its resources in lieu of capital to boost its output; hence the resulting capital output ratio is low. |
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