The ratio of capital to labour employed in a process, a firm or an industry. This ratio depends on what techniques of production are feasible. Of all feasible techniques, firms normally prefer to use the cheapest. This means that the capital-labour ratio tends to be higher, the higher are wage rates relative to the cost of employing capital. As in most industries it is easier to vary labour input than capital stock in the short run, observed capital-labour ratios tend to fluctuate over the trade cycle, being higher in slumps than in booms.

• classical model
• classical unemployment
• classification, industrial
• Clayton Act
• Clean Air Act
• clean floating
• clearing, bank
• clearing bank
• clearing-house
• clearing, market
• cliometrics
• close company
• closed economy
• closed shop
• closing prices
• clustering
• CMEA
• coalition
• Coase theorem
• Cobb-Douglas function
• cobweb
• Code, City
• coefficient
• coefficient of variation
• coin