Suppose a small island economy uses its resources to produce mangos and national parks for tourism. What shape would you expect this economy's production possibilities curve to have? _________________ Explain why.
If this economy is producing on its production possibilities frontier, but it is not producing the socially optimal combination of goods:
a) What type of efficiency is this economy definitely achieving? _____________________
b) What type of efficiency is this economy definitely not achieving? ____________________

Question

Quizplus · Accepted Answer

The Answer of Suppose a small island economy uses its resources to produce mangos and national parks for tourism. What shape would you expect this economy's production possibilities curve to have? _________________ Explain why.
If this economy is producing on its production possibilities frontier, but it is not producing the socially optimal combination of goods:
a) What type of efficiency is this economy definitely achieving? _____________________
b) What type of efficiency is this economy definitely not achieving? ____________________

Suppose a Small Island Economy Uses Its Resources to Produce