What is the capital-output ratio, Business Economics

Assignment Help:

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.


Related Discussions:- What is the capital-output ratio

Online stock trading company, An online stock trading company makes part of...

An online stock trading company makes part of their revenue from clients when the clients trade stocks therefore, it is important to the company to have a good idea of how many tra

Socio economic shortcoming, Discuss  (1) the key characteristics of the ...

Discuss  (1) the key characteristics of the Chinese economy during the Mao era, (2) the socio-economic shortcomings  that China experienced between 1949 and 1976 and (3) t

Economies of scale, theory of economies of scale,dis-economies,intergration...

theory of economies of scale,dis-economies,intergration

Business and economics, #discuss the theory of costs in relation to busines...

#discuss the theory of costs in relation to business operations.you should identify different types of costs and explain how the supply curve is constructed for an organisation?

Railways economics, AsEvaluate the implications of implementing this ideal ...

AsEvaluate the implications of implementing this ideal product mix in Transnet Freight Rail.

Economics, Ask question #Minimum 1000words accepted#

Ask question #Minimum 1000words accepted#

Currency at a bank, Assume Mr. Robinson deposits pounds 600 in currency at ...

Assume Mr. Robinson deposits pounds 600 in currency at a bank. Later that day Ms. Volker borrows pounds 1200 from the similar bank. The money supply will have enhanced by pounds 60

Graphing Taxation., Demonstrate graphically the cost of income taxation of ...

Demonstrate graphically the cost of income taxation of 30% to consumers and producers for an income of $27,908. How does the taxation change if the income was $220,874? How does

Actual and theoretical price adjustment, For any stock splits (if there wer...

For any stock splits (if there were any it will look like the screen below) compare the actual and theoretical price adjustment.  For example, on the day that a 2-for-1 split is ef

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd