economics hard Fill in the Blank

The Incremental ___-Output Ratio (ICOR) is a metric used to assess the efficiency of investment in an economy; a lower value indicates that less additional capital is required to produce one extra unit of economic output.

  1. India Debt Resolution Company Ltd (IDRCL)
  2. 75
  3. bracket creep (or fiscal drag)
  4. Capital

Answer: Capital

ICOR is a crucial indicator of an economy's structural health and technological progress. A high ICOR indicates inefficiency, poor infrastructure, and bureaucratic delays (meaning massive investments yield little growth). Conversely, a low ICOR signifies high capital productivity, advanced technology, and efficient resource allocation, allowing the economy to grow rapidly without requiring unsustainably high savings rates.

Topic Macroeconomics - Growth
Exam Relevance UPSC Prelims, SSC CGL
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