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Capital : Output Ratio of a measures
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- its per unit cost of production
- the amount of capital invested per unit of output
- the ratio of capital depreciation to quantity of output
- the ratio of working capital employed to quantity of output
- its per unit cost of production
Correct Option: B
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.
