"Now that Blake paints the broad surfaces and I do the trim work, we can paint a house in three-fourths the time that it took for each of us to do both." This statement most clearly reflects
A) the importance of secondary effects.
B) the fallacy of composition.
C) the law of comparative advantage.
D) behavior inconsistent with economizing.

Question

Quizplus · Accepted Answer

The statement reflects the law of comparative advantage, which states that when individuals or countries specialize in producing goods or services for which they have a lower opportunity cost than others, they can trade with others and both parties can benefit. In this scenario, Blake and the speaker have identified their respective comparative advantages in painting broad surfaces and trim work, respectively, and by specializing in these tasks, they can complete the job more efficiently.

"Now That Blake Paints the Broad Surfaces and I Do