Despite being a high saving economy, capital formation may not result in significant increase in output due to
weak administrative machinery
illiteracy
high population density
high capital-output ratio
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2018
The capital-output ratio (COR) is an economic metric that describes the relationship between the amount of capital invested in an economy and the amount of output it produces. A high COR indicates that a large amount of capital is required to produce a given increase in output.