capital-output ratio
economics
Quick Summary
The capital-output ratio, also known as the capital coefficient, is an economic metric that represents the value of capital in relation to the value of output. It is calculated as the ratio of the value of capital to the value of output.1
An industry or economy with a high capital-output ratio is considered capital-intensive. This means it requires a greater expenditure in the form of capital compared to labor to produce a unit of output.2
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