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Question

The number of units of capital required in order to produce one unit of output is termed as:

A
Capital output ratio
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B
Input output ratio
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C
Investment ratio
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D
Capital input ratio
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Solution

The correct option is C Capital output ratio
Units of capital employed to produce a certain level of output divided by total units of output gives us the capital output ratio. It is measured in order to check the efficiency and effectiveness of an organization.

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