Which of the following is NOT a benefit to a country that results from trade based on comparative advantage?

• A. Access to a greater variety of goods and services
• B. Higher total output for all trading countries
• C. Complete self-sufficiency in all goods
• D. Increased overall economic efficiency

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of comparative advantage, which means that countries specialize in producing goods for which they have a lower opportunity cost compared to other countries.
2. Step 2: Recognize that trade based on comparative advantage allows countries to specialize and then trade, leading to benefits such as access to a greater variety of goods and services.
3. Step 3: Note that specialization and trade increase total output for all trading countries because resources are used more efficiently.
4. Step 4: Understand that increased overall economic efficiency is a direct result of countries focusing on their comparative advantages and trading with others.
5. Step 5: Identify that 'complete self-sufficiency in all goods' is NOT a benefit of trade based on comparative advantage, because trade inherently involves interdependence rather than self-sufficiency.