WBCS.LIVE practice question

Capacity utilisation-

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Is usually near 100 percent
  2. Represents the percent of the labour force that is employed
  3. Is a measure of the proportional of the existing capital stock used for current production
  4. Rises as the economy moves into a recession, since firms must replace unemployed workers with some other resources to maintain production

Correct answer and explanation

Correct answer: Is a measure of the proportional of the existing capital stock used for current production