Capital deepening refers to

Capital deepening refers to

[amp_mcq option1=”going for more fixed capital per worker” option2=”emphasis on social overhead capital” option3=”constant capital-output ratio” option4=”increasing capital-output ratio” correct=”option1″]

This question was previously asked in
UPSC CDS-2 – 2016
Capital deepening refers to going for more fixed capital per worker.
Capital deepening is an economic term that describes an increase in the amount of capital goods available per worker. This typically leads to an increase in labour productivity and is a key factor in economic growth.
Fixed capital includes machinery, equipment, buildings, and infrastructure used in production. When the ratio of this capital to the labour force increases, workers have more tools and resources at their disposal, allowing them to produce more output per hour worked. This process is distinct from capital widening, where the capital stock increases proportionally with the labour force, keeping the capital-labour ratio constant.
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