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I know this is a gross simplification, but this is a ratio of how many times the drive shaft (and thus the engine) turns in relation to the tire. The reason for a higher numerical ratio is to have the engine turning in it's "power" band. Most engines generate more power as rpm (revolutions per minute) increases, until it reaches a plateau, then it drops off. The idea of a higher ratio (numerically) is to put that power band to use where the driver needs it. Lower ratios (higher numerically) spin the engine faster for a certain speed, thus moving the power band to a lower vehicle speed. This is helpful in towing, and for faster acceleration. The downside is the engine will be turning faster at "highway" speeds, and not be as fuel efficient and will limit the speed the vehicle can run, as RP M's will be near maximum before drag/lift limits the actual speed.
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