1. Refer to the production possibilities frontier illustrated in the graph to answer the questions below. Cheese 1 60 200 220 Wine a) What is the opportunity cost of moving from point A to point B? (2 Marks) b) Which point represents unattainable consumption? (2 Marks) c) In the graph explain why as more wine is produced the opportunity cost increases. (3 marks) Accounting for the Economy 2. What is the distinction between nominal GDP and real GDP? How does the growth rate of real GDP contribute to an improved standard of living? (5 marks) Accounting for the Economy 2. What is the distinction between nominal GDP and real GDP? How does the growth rate of real GDP contribute to an improved standard of living? (5 marks) Economic Growth and Productivity 3. It has been shown that productivity explains most ofthe increase in living standards associated with economic growth. Explain one factor that increases productivity over time