Recall the Application about Jasper Johns and house painting to answer the following question(s). In this Application, it is assumed that Johns can earn $5,000 per day by painting works of art, and therefore should hire a house painter who charges $150 per day, and takes 10 days, to paint his house.
-This Application addresses the economic concept of
A) the marginal principle.
B) diminishing returns.
C) specialization and exchange.
D) real versus nominal costs.

Question

Quizplus · Accepted Answer

The application addresses the concept of specialization and exchange, as it suggests that Johns should specialize in painting artworks (where he can earn a higher income) and exchange his money for the services of a house painter, who specializes in painting houses. This allows for each person to focus on their comparative advantage and mutually benefit from the exchange.

Recall the Application About Jasper Johns and House Painting to Answer