What is the capital-output ratio capital-output ratiothis, Ask an Expert

Economics

What is the capital-output ratio?

Capital-output ratio:

This ratio (k) is the amount of capital required to produce £1 of Gross Domestic Product generated, every year.

• When £6 worth of capital equipment makes all £1 of yearly output in that case the capital-output ratio is six to one.

• A three to 1 ratio shows that simply £3 of capital is needed to produce every £1 of output, every year.

The Harrod-Domar model plays the key role through the productivity of investment that is an economy capital-output ratio (k). The additional productive producer goods which, the lower the capital output ratio that the advanced the economic growth.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9579773

Have any Question?Write your Review or question?

Related Questions in Business Economics

Has globalization increased or decreased social and

Has globalization increased or decreased social and economic disparities around the globe? Can you please provide details.

Why should we take selection and participation bias into

Why should we take selection and participation bias into account when analyzing data

Staples has six special drafting pencils for sale two of

Staples has six special drafting pencils for sale, two of which are defective. A student buys two of these six drafting pencils, selected at random. Let the random variable X be the number of defective pencils. Construct ...

Gregs hardware has determined the following demand and

Greg's Hardware has determined the following demand and supply equations for nails QD = 10,000-25P QS = -5,000 + 50P a. How many nails would be sold for $100? b. At what price would nail sales be zero? c. When P = $200, ...

A drug store is looking into the possibility of installing

A drug store is looking into the possibility of installing a 24/7 automated prescription refill system to increase its projected revenues by $20,000 per year over the next five years. Annual expenses to maintain the syst ...

Determine the minimum sample size required when you want to

Determine the minimum sample size required when you want to be 80% confident that the sample mean is within 1.3 units of the population mean. Assume a standard deviation of 9.24 in a normally distributed population.

What statistic was calculated to determine differences

What statistic was calculated to determine differences between the intervention and control groups for the lumbar and femur neck BMDs? Were the groups significantly different for BMDs?

1 a country and an import of that country whats the reason

1. A country and an import of that country. What's the reason for that import and who are the winners? Are there any losers? 2. A country and an export of that country. b) What's the reason for that export and who are th ...

Trade restrictions can be implemented by tariffs and quotas

Trade restrictions can be implemented by tariffs and quotas acting on price and quantity respectively or by non-tariff barriers (NTBs). Explain what constitute NTBs ranging from industrial policy, technical barriers, sub ...

How does the monopolies make production and pricing

How does the Monopolies Make Production and Pricing Decisions in Economics?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert