Multiple choice

Arrange the option having the right chronological order. (i) Peacock - Wiseman Hypothesis (ii) Voluntary Exchange Approach (iii) Laffer Curve (iv) Cannos of Taxation

  1. (i) (ii) (iii) (iv)

  2. (iv) (ii) (i) (iii)

  3. (iv) (iii) (ii) (i)

  4. (ii) (iii) (iv) (i)
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B Correct answer
Explanation

The correct chronological order is: Adam Smith's Cannons of Taxation (1776), Voluntary Exchange Approach (late 19th century - Wicksell/Lindahl), Peacock-Wiseman Hypothesis (1961 - displacement effect in public spending), and Laffer Curve (1974 - tax rate vs revenue relationship). The sequence spans from classical political economy to modern public finance. Smith's principles came first, followed by voluntary exchange theory in the marginal revolution era, then mid-20th century empirical work on public expenditure growth, and finally supply-side economics in the 1970s.

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