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Q:

Capital deepening refers to 

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

Answer:   A) 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.

 

Subject: Indian Economy
Exam Prep: Bank Exams
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