The ratio of the capital used in a process, firm or industry to output over some period, usually a year. This ratio for any process depends on the relative cost of different inputs. Where technology makes alternative techniques feasible, firms normally choose the cheapest, so capital-output ratios tend to be high when capital is cheap relative to other inputs. For a firm or industry, the capital-output ratio will depend on the mix of different outputs produced and different processes used. The capital-output ratio can be measured as an average ratio, comparing total capital stock with total output, or as a marginal ratio, comparing increases in capital used with increases in output. Both average and marginal capital-output ratios are taken to refer to normal levels of working: when output is abnormally low during a recession, the average capital-output ratio is unusually high, but the marginal capital-output ratio is unusually low.

• redemption date
• redemption value
• redemption yield
• redeployment
• rediscount
• redistribution of income
• redistributive tax
• red-lining
• reduced form
• reducing balance depreciation
• redundancy
• reform
• reform, trade
• refund, tax
• refusal to supply
• regime, exchange rate
• regional aid
• regional policy
• regional trade agreements
• registered unemployed
• register, share
• Registrar of Companies
• regression
• regressive tax
• regulation