Help me with this multiple choice question please: Some people argue that the na

Question

Help me with this multiple choice question please:

Some people argue that the nation needs to be self sufficient in some essential products such as foods and medicine, if there is a war they argue it will be difficult to import such essential items.

Select One:

1. National security argument is a correct argument against specialization based on comparative advantage.

2. National security argument is a correct argument against specialization based on absolute advantage.

3. National security argument is not a correct argument because the country can always stockpile essential goods during peacetime.

4. The argument is valid for the ricardian case because the countries specialize completely in the ricardian case, but the argument is not valid for the Hecksher-Ohin case due to incomplete specialization.

Explanation / Answer

2. National security argument is a correct argument against specialization based on absolute advantage.

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