Reference no: EM133126223

Please refer to Table 1 and answer the following questions:

Table 1 shows the production possibilities frontier of a small Pacific island economy. Use this table to work on these exercises.

1. Explain why it would be inefficient to produce 4 pounds of fish and 5 pounds of berries.
2. Explain why moving from row A to row B of Table 1 involves trade off.
3. Explain why the citizens of this economy could enjoy a free lunch if they were producing 4 pounds of fish and 5 pounds of berries.