Question

The **Wagner's Law** of increasing state activities suggests that as a nation's per capita income rises, public expenditure will:

• A. Decrease in proportion to the decrease in income.
• B. Remain stagnant regardless of income changes.
• C. Increase at a slower rate than income growth.
• D. Increase in proportion to the increase in income.

Answer 1

Answer:

D. Increase in proportion to the increase in income.

• Wagner's Law, or the Law of Increasing State Activities, states that as per capita income and industrialization rise, public expenditure on social and administrative services will increase proportionally.