Despite being a high saving economy, capital formation may not result in significant increase in output due to

[UPSC Civil Services Exam – 2018 Prelims]

(a) weak administrative machinery

(b) illiteracy

(c) high population density

(d) high capital-output ratio


Answer: (d)        

Explanation:

  • Capital Output Ratio (COR) is a measure of the percentage increase in capital formation required to obtain a percentage increase in GDP.
  • The capital-output ratio is the relationship between investment and resulting output over a period of time.
  • COR is a measure of capital required for producing one unit of output.
  • If capital to output ratio is high then capital formation may not result in a significant increase in the output.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

Read More »

Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

Read More »
Loading...
Left Menu Icon