Question

QUESTION 17

1. This protective argument states that the government must limit imports during peacetime to be assured that the country can meet its needs for defense goods during times of war.
   
   
   
   
   

	a.	Strong government argument
	b.	National defense argument
	c.	Infant industry argument
	d.	International trade argument

10 points   

QUESTION 18

1. The Heckscher-Ohlin theory

	a.	builds on strategic-trade theory.
	b.	builds on the theory of absolute advantage.
	c.	builds on the theory of comparative advantage.
	d.	builds on the Stolper-Samuelson theory.

Answer 1

The correct option is: National defense argument

The national defense argument states that the government must limit imports during peacetime to ensure that the country can meet its needs for defense goods during times of war. While the need to provide for the national defense is clear, the specificity rule says to think clearly about what the actual problems are, and then use policies that act directly on them.

The correct option is: builds on the Stolper-Samuelson theory.

The Heckscher-Ohlin model is an economic theory that proposes that countries export what they can most efficiently and plentifully produce. The model emphasizes the export of goods requiring factors of production that a country has in abundance.

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