Match the following : List IList II (1) Wagner's Law (a) Focuses on Govt. role in providing public…
Wagner's Law links economic development with increasing public expenditure, while Arrow's Paradox concerns the limits of aggregating individual preferences into a collective…
Choose your answer
Match the following :
| List I | List II |
|---|---|
| (1) Wagner's Law | (a) Focuses on Govt. role in providing public goods and redistributing income. |
| (2) Arrow's Paradox | (b) States that as an economy develops, public expenditure increases. |
| (3) Musgrave's Theory | (c) Demonstrates the impossibility of creating a fair voting system that reflects individual preference. |
Answer and explanation
Correct answer B
Wagner's Law links economic development with increasing public expenditure, while Arrow's Paradox concerns the limits of aggregating individual preferences into a collective choice satisfying specified fairness conditions. Musgrave's theory includes the government's allocation and redistribution functions, giving the matches (1)-(b), (2)-(c), and (3)-(a).
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Madhya Pradesh SET (MP SET)