How did sectarian violence influence the shaping of some parts of the West?

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 Steve and Craig don't trade with each other, who is better off? Why?

Please explain how the school of thought (liberal) could improve the current state of economics in the U.S. What kind of policies you would suggest politicians follow in order to benefit the world economy?

Based upon those notions of self-interest and public interest and the bringing of both into harmony, according to Adam Smith, how would a market economy accomplish that harmony about which he describes? What is government's place in that market economy?