Defense as an economic problem -- The Background: defense against what? -- The Resources available for defense: Resource limitatins -- Diverting GNP to defense: how big a defense budget? -- Indirect effects of defense spending -- The Economic strengths of the major powers -- Efficiency in using defense resources: Efficiency in military decisions -- An Illustrative application of economic analysis -- The Criterion problem -- Incommensurables, uncertainty, and the enemy -- Problems associated with time -- Institutional arrangements to promote efficiency -- Special problems and applications: Military research and development -- Logistics -- Teh Economics of military alliance -- Economic warfare and disarmament -- Mobilization, civil defense, and recuperation -- Choosing policies for deterrence

1. Economics