Question

Which one of the following is the correct estimate of the capital output ratio for the Ninth Five Year Plan?

  1. 6.0
  2. 5.5
  3. 5.0
  4. 4.0

Answer:

Option B: 5.5

Detailed Solution:

The correct answer is “5.5”.

The capital-output ratio for the Ninth Five Year Plan was estimated to be 5.5. This means that approximately ₹5.5 of capital investment was required to generate ₹1 of output during that period.