Which of the followings are not true pertaining to Wagner’s Law of increasing state activities? A.…
Wagner’s law describes development-related expansion of public activity, conventionally as a positive theory with rising expenditure share. War-induced displacement and…
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Which of the followings are not true pertaining to Wagner’s Law of increasing state activities?
A. Wagner’s Law is classified as positive theory of public expenditure.
B. Public sector in industrializing nations grow as a proportion of total economic activity with the increase in per capita income and output.
C. Proportionate increase in public sector is not constant but increasing with the increase in total economic activity.
D. The law accounts for the effect of war on public expenditure.
E. Public expenditure tends to grow in a stepwise manner.
Answer and explanation
Correct answer D
Wagner’s law describes development-related expansion of public activity, conventionally as a positive theory with rising expenditure share. War-induced displacement and stepwise expenditure jumps belong to Peacock-Wiseman’s account. Thus D, E are not Wagner’s characteristic claims; codes rejecting A, B, C do not fit the standard attribution.
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UGC NET Economics