Defensive expenditures refer to the costs incurred by individuals, businesses, or governments to protect against potential threats, risks, or losses. These expenditures are aimed at preventing harm or damage rather than generating profit or utility. Defensive expenditures can take various forms, such as: 1. **Security Costs**: Spending on security personnel, surveillance systems, alarms, and physical barriers to protect property and assets from theft, vandalism, or other criminal activities.

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