The correct answer is A) value.
The passage demostrates a claim of value.
It is wrong for a country to spend more on its military than it spends on health care, education, and housing for its citizens. This passage is not demostrating a claim of fact, definition, or policy, but value.
When talking about wrong or right, as the passage does in the very beginning of the sentence, we are referring to a concept of value, moral values. It is not an imperative or a requirement that a country looks first for its people necessities, but it is highly and moral recommended to do so first, and then its military purchases, because the priority should be the welfare of the people, the health of the citizens to offer them better-living conditions, and the later, the investment on military weaponry.