What does the capital-to-labor ratio measure?

The capital-to-labor ratio measures the amount of capital available per unit of labor in a production process. It signifies the level of capital intensity in an economy or industry, indicating how much machinery, equipment, or technology is used relative to the workforce. A higher ratio suggests more capital investment per worker, which can lead to increased productivity and efficiency. Conversely, a lower ratio indicates a more labor-intensive approach to production.