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6:36 < Bacl < Assignment Details Principles of Macroeconomics-200-71 PLEASE NUMBER YOUR ANSWERS WHEN TYPING. Answer these questions: 1. Define the term in economics "absolute advantage" and illustrate with an example 2. 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. If they each spend four hours a day fishing and four hours a day harvesting pineapples, how many of each will Steve produce? How many will Craig produce? What will their total production be? 3. What benefits are to be gained from countries producing according to the concept of comparative advantage? What if a country is absolutely more productive in all goods? 4. What is comparative advantage, and why is it important in international trade? 5. The gains from expanding trade are probably most important for the low-income economies in the world as opposed to the gains though trade benefitting the USA. Why might this be so? How you will be graded Submit Assignment < Previous Dashboard Calendar Notifications Next Inbox