Q: What is 'Incemental Capital-Output Ratio' (ICOR) and what does the number explain?
A: Simply, ICOR is the ratio of investment to output. If the number is high then the economy requires a big amount of investment to produce a certain output level . Hence, high ICOR constitutes inefficiency.
An example of high ICOR is: Ghana. They produced a lot of shots on goals, but did produce any goals against Brazil. Other example: Holland in Eur0 2000 when they were defeated by Italy in the semifinal, or Manchester United's Andy Cole a few years back.