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  • Question
  • Capital deepening refers to


  • Options
  • A. going for more fixed capital per worker
  • B. emphasis on social overhead capital
  • C. constant capital-output ratio
  • D. increasing capital-output ratio

  • Correct Answer
  • going for more fixed capital per worker 

    Explanation

    Capital deepening is a situation where the capital per worker is increasing in the economy. This is also referred to as increase in the capital intensity. Capital deepening is often measured by the rate of change in capital stock per labour hour.

     

  • Tags: Bank Exams

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