Discussion
Adam Smith's views about defence economics may include the following :
(i) Military force was necessary to protect society
(ii) Professional soldiers were necessary
(iii) Since defence was for common good, all should bear the expenses
(iv) Payment was to be made on the basis of "payment according to benefit" principle :
Codes :
Answer: C
Adam Smith's views include (i), (ii) and (iii).
In The Wealth of Nations (Book V), Smith holds that defence is the first duty of the sovereign, protecting society from violence and invasion by other societies (i). As societies advance, a professional standing army becomes necessary, being superior to a militia (ii). And since defence benefits the whole society, its expense should be defrayed by the general contribution of the whole society (iii).
Statement (iv) is wrong for defence: Smith applies payment according to benefit to services that benefit particular persons, such as roads or the administration of justice in some cases, but not to defence, which serves everyone. So the code including (iv) is ruled out.
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development