Question : Capacity utilisation is:
Option 1: is usually near 100 per cent
Option 2: represents the per cent of the labour force that is employed
Option 3: is a measure of the proportion of the existing capital stock used for current production
Option 4: it rises as the economy moves into a recession since firms must replace unemployed workers with some other resources to maintain production
Recommended: How to crack SSC CHSL | SSC CHSL exam guide
Don't Miss: Month-wise Current Affairs | Upcoming government exams
Correct Answer: is a measure of the proportion of the existing capital stock used for current production
Solution : The correct answer is a measure of the proportion of the existing capital stock used for current production .
Capacity utilisation can also be interpreted as a measure of the proportion of the existing capital stock used for current production. This is because capital stock is one of the most important inputs in production. Capacity utilisation is calculated by dividing the actual output by the potential output. Potential output is the maximum amount of output that could be produced with the existing resources, assuming operating conditions.
Related Questions
Know More about
Staff Selection Commission Combined High ...
Answer Key | Eligibility | Application | Admit Card | Preparation Tips | Result | Cutoff
Get Updates BrochureYour Staff Selection Commission Combined Higher Secondary Level Exam brochure has been successfully mailed to your registered email id “”.




