Economics · Capital Output Ratio
What does the term Incremental Capital-Output Ratio (ICOR) refer to?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The ratio of total capital stock to total domestic output.
- 2The additional amount of output generated from an additional unit of capital.
- 3The additional amount of labour required to produce an additional unit of output.
- 4The additional amount of capital required to produce an additional unit of output.✓
Correct answer
The additional amount of capital required to produce an additional unit of output.
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