In the context of public expenditure, Wagner's Law suggests that: MCQ with Answer and Explanation

In the context of public expenditure, Wagner's Law suggests that:
A. Only private expenditure increases with development
B. Public expenditure tends to increase as the economy develops
C. Public expenditure is independent of economic growth
D. Public expenditure declines with economic development
Answer: Option B
Solution (By JKSSB Mock Tests)
Wagner's Law posits that as an economy develops, the share of public expenditure in national income tends to rise due to increased demand for public goods and social services.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a characteristic of the 'Green New Deal' type of policy proposals?
A. Large-scale public investment programmes aimed at simultaneously addressing climate change, economic inequality and job creation
B. Only voluntary private-sector initiatives
C. Only austerity measures
D. Only market-based carbon pricing without public investment

Correct Answer: Option A


Explanation:
Green New Deal proposals typically combine ambitious climate targets with large public investment in clean energy and infrastructure, together with social policies intended to ensure a just transition.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is not one of the eight core industries?
A. Coal
B. Textiles
C. Crude oil
D. Natural gas

Correct Answer: Option B


Explanation:
Textiles is not among the eight core industries; they are coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'National Strategy for Financial Education' is formulated by:
A. World Bank
B. Ministry of Defence
C. SEBI only
D. RBI and financial sector regulators

Correct Answer: Option D


Explanation:
The National Strategy for Financial Education is formulated by RBI and other financial regulators.

This question belongs to: Economy GK Economy Set 1