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Discussion

The disciple of defence economics mostly concentrates on :

  • A.Pre-war economy
  • B.Mobilization of military resources
  • C.Planning, Programming and Budgeting of resources for defence requirements
  • D.Allocation of natural resources

Answer: C

The keyed answer is Planning, Programming and Budgeting of resources for defence requirements.

Defence economics studies how a country allocates scarce resources to defence and how defence spending affects the economy. Its central practical concern is deciding what forces are needed and paying for them efficiently, which in most countries is organised through a Planning, Programming and Budgeting System (PPBS), introduced in the US Defence Department by Robert McNamara in the 1960s.

The pre-war economy and the mobilization of military resources are narrower topics within war economics, and the allocation of natural resources is a general economic question, not the focus of defence economics.

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