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Q: What are the advantages of capital output ratio?
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What is Harrad domar model in economic development?

It is the idea that the economic growth is dependent on capital-output ratio (k, calculated as: Total output produced/total capital invested i.e. efficiency) and the saving ratio of the population. The assumptions it makes are: - Output is a function of capital stock - The marginal product of capital is constant. - Capital is necessary for output - The product of the savings rate and output equals saving which equals investment - The change in the capital stock equals investment minus the depreciation of the capital stock It states that Rate of growth of GDP = Savings ratio/ Capital output ratio.


What are factors affecting capital output ratio and economic growth?

It is difficult to estimate the capital output ratio for an economy. The productivity of capital depends upon many factors such as the degree of technological development associated with capital investment , the efficiency of handling new types of equipment , the quality of managerial and organizational skill, the existence and the extend of the utilization of economic overheads and the pattern and rate of investment. For instance, the higher the proportion of investment devoted to the production of direct commodities, the lower the capital output ratio, and higher the proportion of investment devoted to public utilities, economic and social overheads. The higher shall be the capital output ratio, and higher the proportion of investment devoted to public utilities, economic and social overheads.


What is the multifactor productivity ratio?

Multifactor productivity measures are indicators that take into account the utilization of multiple inputs (e.g., units of output per the sum of labor, capital, and energy or units of output per the sum of labor and materials).


What are the advantages and disadvantages of a high leverage ratio?

disadvantages of a high leverage ratio in financial crisis


What is typically the most efficient ratio of labor to capital?

equal amounts of labor and capital

Related questions

What is capital output ratio?

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. Read more: http://www.investorwords.com/15287/capital_output_ratio.html#ixzz25NCB393U


What is the capital output ratio in India?

4


What is Harrad domar model in economic development?

It is the idea that the economic growth is dependent on capital-output ratio (k, calculated as: Total output produced/total capital invested i.e. efficiency) and the saving ratio of the population. The assumptions it makes are: - Output is a function of capital stock - The marginal product of capital is constant. - Capital is necessary for output - The product of the savings rate and output equals saving which equals investment - The change in the capital stock equals investment minus the depreciation of the capital stock It states that Rate of growth of GDP = Savings ratio/ Capital output ratio.


What is the capital output ratio at second five year plan?

5:4:1


What are factors affecting capital output ratio and economic growth?

It is difficult to estimate the capital output ratio for an economy. The productivity of capital depends upon many factors such as the degree of technological development associated with capital investment , the efficiency of handling new types of equipment , the quality of managerial and organizational skill, the existence and the extend of the utilization of economic overheads and the pattern and rate of investment. For instance, the higher the proportion of investment devoted to the production of direct commodities, the lower the capital output ratio, and higher the proportion of investment devoted to public utilities, economic and social overheads. The higher shall be the capital output ratio, and higher the proportion of investment devoted to public utilities, economic and social overheads.


During the second five year plan period the planners worked out the capital output ratio?

5:4:1


What determines the output voltage and the current of a transformer?

The ratio of output windings to input windings determines the ratio of output voltage to input voltage. The ratio of current is the inverse.


What does investment to GDP ratio mean?

It is the ratio of the amount of money spent on investment in plant and capital - including stocks (inventories) over a period of time compared to the total output of the country (or region).


What is the input to output ratio formula?

output/input


How do you find speed ratio?

Distance input --------------- = Speed Ratio Distance output The distance input divided by the distance output equals the Speed Ratio.


Is the ratio of output force to input force of a hydraulic press equal to the ratio of the output and input piston areas?

Areas


What is the ratio of output to input?

efficiency