Final answer:
Macro Island is a small open economy engaged in various economic activities such as agriculture, handicrafts, textiles, manufacturing, industry, and services. The population heavily relies on agriculture and agricultural services, but small land holdings and inadequate technology may limit productivity.
Step-by-step explanation:
Macro Island is a small open economy, meaning it participates in international trade and is affected by global economic factors. It is likely engaged in various economic activities such as agriculture, handicrafts, textiles, manufacturing, industry, and services.
The population of Macro Island heavily relies on agriculture and agriculture-related services for their income. However, due to small land holdings and inadequate use of modern farming technologies, productivity may be low.