Maharashtra State Service Pre 2026 PracticeHard
Q.Consider the following statements regarding 'Incremental Capital Output Ratio' (ICOR): (a) ICOR explains the relationship between the level of investment made in the economy and the consequent increase in GDP. (b) A higher ICOR indicates higher efficiency and productivity of capital. (c) Lowering the ICOR is generally desired for achieving faster economic growth. Which of the statements given above are correct?
a
(1) Only (a) and (b)
b
(2) Only (b) and (c)
c
(3) Only (a) and (c)
d
(4) (a), (b) and (c)
Correct Answer: Option C
The correct solution involves applying the fundamental concept to derive the final value step by step...