1. International Trade a. What is comparative advantage, and why is it important in international trade? b. Steve and Craig have been shipwrecked on a deserted island in the South Pacific. Their economic activity consists of either gathering pineapples or fishing. We know Steve can catch four fish in one hour or harvest two baskets of pineapples. In the same time Craig can reel in two fish or harvest two baskets of pineapples. Which task should Steve and Craig specialize in? 2. Explain how absolute advantage and comparative advantage differ. 3. Give an example in which one person has an absolute advantage in doing something but another person has a comparative advantage. 4. Is absolute advantage or comparative advantage more important for trade? Explain your answer. 5. When does a country become an exporter of a good? An importer? 6. Describe what a tariff is and its economic effects