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Questions › UGC-NET › UGC-NET 2025 › Q66
2 marksPublic Economics › Public expenditure and public debt › Public expenditure: growth and cost-benefit analysisHardabout 2 min

UGC-NET 2025 Question 66: Public expenditure and public debt

Which of the following are not true pertaining to Wagner's Law of increasing state activities?

A. Wagner's Law is classified as a positive theory of public expenditure.

B. The public sector in industrializing nations grows as a proportion of total economic activity with the increase in per-capita income and output.

C. The proportionate increase in the 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. Choose the most appropriate answer from the options given below:

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Answer and worked solution

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Public expenditure and public debt has come up 29 times in 6 exams since 2012.

What this question tests

This question is on Public expenditure: growth and cost-benefit analysis, part of Public expenditure and public debt in Public Economics.

Why government spending grows and how projects are appraised.

TestStop has 5 past-paper questions on this subtopic.

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