Multiple choice

What has been the status of the capital output ratio in most of our Five Year Plan?

  1. Nothing can be said firmly.

  2. Higher than estimated

  3. Lower than estimated

  4. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In most Indian Five Year Plans, the actual capital-output ratio has been higher than originally estimated. This means more capital was required to produce each unit of output than planned, indicating inefficiencies in capital utilization. This pattern has been a consistent concern in India's planning process, reflecting implementation challenges.