The production possibility curve (PPC) is a diagram that shows all the possible combinations of goods that an economy can produce within a specific time. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. However, you may visit "Cookie Settings" to provide a controlled consent. This cookie is set by GDPR Cookie Consent plugin. What are the factors that infect 2019's stock market? The PPC can demonstrate the fact that because of scarcity, we must make choices. An outward shift of the Production Possibilities Curve (PPC) happens when there is an increase in the amount of resources that the country has, or there is an improvement in technology which allows the country to produce more of either one or both the goods. If the production possibility frontier shifts to the right, this would show economic growth. There are 3 common factors of 4 and 8, that are 1, 2, and 4. This would decrease the output of the nation, and shift the production possibilities curve inward, or to the left. Before we answer this, let's review some of the basic ideas about the production possibilities curve, using two types of curves. We also use third-party cookies that help us analyze and understand how you use this website. In the past, PPC was primarily used as a way to drive direct sales through targeted ads. How does technology shift the rate of production? The four factors consist of resources required to create a good or service, which is measured by a countrys gross domestic product (GDP).https://corporatefinanceinstitute.com factors-of-productionFactors of Production Overview and Characteristics or by advancements in technology. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Do Men Still Wear Button Holes At Weddings? This cookie is set by GDPR Cookie Consent plugin. Amount of specialization and trade increases. What factors influence foreign direct investment? Allocative Efficiency Examples & Formula | What is Allocative Efficiency? When the economy grows and all other things remain constant, we can produce more, so this will cause a shift in the production possibilities curve outward, or to the right. 1 What causes the PPF curve to shift outward? Shifts in the PPF Curve Given the fact that resources are scarce, we have constraints, which is what the curve shows us. It's a graphical presentation representing various output levels of two products with fixed resources. In microeconomics, the PPF shows the options open to an individual, household, or firm in a two good world. labor. The factors leading to shifts in the PPC include: 1. PPC is downward sloping curve from left to right(Whole economics works like this; from left to right). If the total amount of production factors like labor or capital increases, then the economy is able to produce more goods at any point along the frontier. If the economy were to shrink, then, of course, the curve would shift to the left. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. The new innovations that create technological advancements such as new machines and industrial assembly lines increase the rate of production, thus shifting the PPF outward. What are the assumptions of a market? What could be the inputs? What are the factors that influence the aggregate demand in a country? Where there is advancement of technology or increase in availability of resources or introduction of a production method with improved efficiency in respect to both the goods, then PPF will shift to the right, i.e. What are the factors that seem to drive the globalization of the automobile industry? Natural resources used in the productive process. When the PPC is concave (bowed out), opportunity costs increase as you move along the curve. Risk taking and organising the factors of production. Is the production possibility frontier outside the PPF? A decrease in the size of the labor force. How does unemployment affect the production possibilities curve? What are the factors that influence labour remuneration in business organizations? There are several factors that can cause the production possibilities curve to shift outward, leading to an increase in the total amount of goods and services that can be produced. Outward or inward shifts in the PPF can be driven by changes in the total amount of available production factors or by advancements in technology. Become a Study.com member to unlock this answer! Any point inside the production possibilities curve indicates: the presence of inflationary pressures. On the other hand, if the country gets devastated by a major hurricane, it's not too difficult to imagine that this setback would make it more difficult to produce things. Which situation would most likely cause a nations production possibilities curve to shift inward? Now we're producing things as fast as we can, largely driven by the war, but we are on the curve. An error occurred trying to load this video. What factors could cause a change in consumption? Inward migration of younger, skilled workers. Improved education, training and healthcare to lift labour productivity. In this situation, the X1Y2 curve shifts outwards to the X2Y2. What are the key factors to consider when venturing into a business? Thus technological progress means increase in total factor productivity. What factors affect the shift in the supply curve to the left? What are the factors contributing to the inflow of FDI in Southeast Asian countries? A nation's production possibilities curve can be shifted outward by technological development. So, now we can talk about shifts in the entire curve. Outward or inward shifts in the PPF can be caused mainly by changes in the total amount of available production factors or by advancements in technology. We said that any point inside the curve is not efficient, and any point outside the curve is unobtainable. It Slopes Downwards to Right: Production possibility curve slopes downwards to the right shows that economy has to forgo some quantity of one commodity to get more quantity of other commodity. When the curve shifts inward, or to the left, that means output is decreasing. The basic idea is that anything that causes economic output to increase or decrease will shift this curve. What happens to the curve when the economy shrinks? The PPC of an economy shifts outward if: Resources used in production such as coal, oil, and population in the economy increase. What causes an outward shift of the production possibility frontier (PPF)? Which of the following will cause the PPC to shift outward? This cookie is set by GDPR Cookie Consent plugin. This could happen if there was mass immigration from a country or if there was a natural disaster (earthquake, tsunami, etc). How does a change in technology or resources affect the PPF? plant and machinery and new technology. How Productivity Growth Shifts the AS Curve In the long run, the most important factor shifting the AS curve is productivity growth. Why do technological advance or growth of resources shift the PPC to the right? Definition: Production possibilities frontier (PPF), also known as production possibility curve, indicates the maximum output combinations of two goods or services an economy can achieve by fully using all available resources efficiently. Because of the high level of output in the US, there is little need for choosing among alternative output combinations. When the curve shifts outward, or to the right, that means output is increasing. Which of the following would most likely shift the production possibilities curve outward? How to Market Your Business with Webinars? As a result of technological advance, it becomes possible to produce more output with same resources or the same amount of product with less resource. Which of the following will lead to a rightward shift in PPF? We also use third-party cookies that help us analyze and understand how you use this website. The simplest way to show economic growth is to bundle all goods into two basic categories, consumer and capital goods. So in the last blog we concluded that it is bent outward because of the imperfect substitute-ability of resources which led the central solution having appropriate allocation of inputs to their productive sectors let an outcome which had higher benefits as compared to corner solutions. What are the factors that shift the LRAS curve left and right, and what causes movement along the curve? What three events will shift the LM curve to the left? The economy sees improvements in technology which make production more efficient; more goods can be produced with the same resources. What causes the production possibilities curve to shift outward quizlet? Outward or inward shifts in the PPF can be driven by changes in the total amount of available production factors or by advancements in technology. Why is this? When the curve shifts outward, or to the right, that means output is increasing. Thus technological progress means increase in total factor productivity. What will shift the production possibilities curve outward? - Definition & Formula, Collateralized Mortgage Obligations (CMOs), What is Consumer Demand? The cookies is used to store the user consent for the cookies in the category "Necessary". copyright 2003-2023 Homework.Study.com. This is because consumers spend more money when they have higher incomes. Factors that shift PPF include technological change, population growth, natural disasters, etc. 1 What factors will cause the production possibilities curve to shift outward? Short Run Aggregate Supply Concept & Curve | What is Short Run Aggregate Supply? This cookie is set by GDPR Cookie Consent plugin. Which of the following will be most likely to cause an inward or left shift in the production possibilities curve? In any economy, the major goal that you're trying to achieve is growth, which is to say, producing increasing amounts of the goods and services that consumers demand. Productivity in Economics Concept & Types | What is Long Run Growth? Who wrote the music and lyrics for Kinky Boots? So, before discussing the causes behind the shift of Production Possibility Curve, I will be discussing the properties of the Production Possibility Curve. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. What are the features of production possibility curve? Features of Production Possibility Curve: What are the limitations of production possibility curve? The four key assumptions underlying production possibilities analysis are: (1) resources are used to produce one or both of only two goods, (2) the quantities of the resources do not change, (3) technology and production techniques do not change, and (4) resources are used in a technically efficient way. This causes output to decrease, which in turn shifts the production possibilities curve inward, or to the left. It reduces the production potential by decreasing the quantity of land, destroying infrastructure i.e. What are the main factors, influencing the shadow economy? We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. What are the main reasons for the depreciation of AUD? Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. When the curve shifts outward, or to the right, that means output is increasing. , Immigration reduces the chances of a developing nation. Outward or inward shifts in the PPF can be driven by changes in the total amount of available production factors or by advancements in technology. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Investment in capital i.e. The production possibility curve is used as an indicator of the tradeoffs associated with the resource allocation and production of goods. 137 lessons This cookie is set by GDPR Cookie Consent plugin. However, in recent years, there has been a shift towards using PPC for brand awareness and engagement rather than just direct sales. So here is what that PPF curve looks like. Using the Production Possibility Curve to Illustrate Economic Conditions, Production Possibilities Curve | Concept, Graph & Examples, Production Possibilities Curve | Methods, Use & Assumptions, Law of Increasing Opportunity Cost | Graph, Calculation & Examples, Marginal Opportunity Cost | Formula, Calculations & Examples, Understanding the Challenge of Resource Allocation. Which of the following will be most likely to cause the production possibilities curve for a country to shift inward? no change in the receiving countrys production possibilities frontier. What are two factors that could shift the production possibilities frontier outward? Point H in the chart above is an infeasible production goal because it falls outside the PPF. The production possibilities curve shows the possible combinations of production volume for two goods using fixed resources. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". A shrinking economy could be a result of a decrease in supplies or a deficiency in technology. We're producing the most that we can with the least amount of costs. The curve bows outwards because of the Law of Increasing Opportunity Cost, which states that the amount of a good which has to be sacrificed for each additional unit of another good is more than was sacrificed for the previous unit. An outward shift of a PPF means that an economy has increased its capacity to produce. What is the business cycle? lessons in math, English, science, history, and more. There are also other factors such as increased labor participation and increases in resources that can shift the PPF outward. Education and training increase knowledge, and knowledge tends to increase productivity, so this would shift the production possibilities curve to the right. Resources are fixed. Outward or inward shifts in the PPF can be driven by changes in the total amount of available production factors or by advancements in technology. plant and machinery and new technology. 5 What causes an outward shift in the PPF? outwards. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. The Phillips Curve Model & Graph | What is the Phillips Curve? These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Shifts in the production possibilities curve are caused by things that change the output of an economy, including advances in technology, changes in resources, more education or training (thats what we call human capital) and changes in the labour force. The cookies is used to store the user consent for the cookies in the category "Necessary". Thus, the economy will be able to produce more at any point along the frontier, meaning that the frontier has effectively shifted outwards. The cookie is used to store the user consent for the cookies in the category "Analytics". What are the 4 factors of economic growth? What are the causes of external benefits and external costs? A supply-side policy is one that is intended to cause potential growth in the economy. Outward or inward shifts in the PPF can be caused mainly by changes in the total amount of available production factors or by advancements in technology. plant and machinery and new technology. Probably what you hear about most in economics is how changes in technology affect the curve. The production possibilities curve (PPC, or sometimes PPF for Production Possibilities Frontier) is the first graph that we study in microeconomics. The production possibilities frontier (PPF) is an economic model used to illustrate how people and nations should decide what goods to produce, how much to produce, and for whom they should produce it. What are the three main determinants of income and expansion? What are the several factors that affect the effective incidence of tax? What is the production possibilities frontier? What factors influence the allocation of scarce resources? What is thought to influence the overproduction and pruning of synapses in the brain quizlet? factors of production). See Answer. Changes in technology: If there are positive technological changes then PPC curve shifts outwards. No, When you exand production of one good you must reduce production of some other good in order to produce it. What would cause the PPF to shift inward? To summarize, the production possibilities frontier (PPF) is a model that helps us decide what to produce, how to produce it, and for whom to produce it. What factor is affecting the demand of money? What Fruit Can You Have On The Keto Diet. The curve illustrates the concept of scarcity, efficiency, and opportunity cost well. But opting out of some of these cookies may affect your browsing experience. Factors that shift PPF include technological change, population growth, natural disasters, etc. Production possibility frontier (also called production possibility curve) is a plot that shows the maximum outputs that an economy can produce from the available inputs (i.e. Explain in brief. Why does it slope downward? The internal business environment is comprised of what factors? 7 Is the production possibility frontier outside the PPF? When consumers' income increases, demand for goods also increases, causing the demand curve to shift to the right. Necessary cookies are absolutely essential for the website to function properly. When the economy grows and all other things remain constant, we can produce more, so this will cause a shift in the production possibilities curve outward, or to the right. factors of production). Home | About | Contact | Copyright | Report Content | Privacy | Cookie Policy | Terms & Conditions | Sitemap. When the curve shifts inward, or to the left, that means output is decreasing. The simplest way to show economic growth is to bundle all goods into two basic categories, consumer and capital goods. Shifts in the production possibilities curve are caused by things that change the output of an economy, including advances in technology, changes in resources, more education or training (that's what we call human capital) and changes in the labour force. What are some of the factors that determine the supply of labor in a market? This cookie is set by GDPR Cookie Consent plugin. Inward Shift: If a PPF shifts inwards, it indicates that the economy is shrinking, resulting in non-optimal resource allocation and loss of . Shifts in the production possibilities curve are caused by things that change the output of an economy, including advances in technology, changes in resources, more education or training (thats what we call human capital) and changes in the labor force. 2 When a production possibilities frontier shifts outward? What causes the production possibilities curve to shift inward? What does it mean to be inside the production possibilities curve? Has income inequality changes in the U. S. over time? If the total amount of production factors like labor or capital increases, then the economy is able to produce more goods at any point along the frontier. Let me repeat the meaning of PPC; The Production possibility curve shows the combination of two goods that an economy can produce, given the resources and technique of production. One measure of this is output per worker or GDP per capita. If the economy were to shrink, then, of course, the curve would shift to the left. What might cause a PPF to shift to the right? flashcard sets. This would decrease the output of the nation, and shift the production possibilities curve inward, or to the left. Economic growth will shift the PPC to the right as more of the two goods can now be produced. What factors influence your decision on what to invest in? Copyright 2023 Learn With Anjali. Therefore, the greatest common factor of 4 and 8 is 4. Which situation would most likely cause a nations production possibilities curve to shift inward group of answer choices? It tends to argue that the two products being produced are inversely related, i.e., the production of one increases with a decrease in the other product's . But opting out of some of these cookies may affect your browsing experience. When using a PPF, growth is defined as an increase in potential output over time, and illustrated by an outward shift in the curve. A PPC can illustrate an output of only _____ goods. If the available resources decrease for both the goods due to any natural calamity; the PPC will shift to the left. Finally, if there was a sudden increase in the labor force, either from a population boom or, more likely, from immigration, then the production possibilities curve shifts outward, or to the right. It implies an increase in the productive capacity, so the economy can now produce more of both goods. What factors will influence an outward shift in the PPC? Analytical cookies are used to understand how visitors interact with the website. The PPC of an economy shifts outward if: Resources used in production such as coal, oil, and population in the economy increase. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. What size is a high school graduation cap? These cookies track visitors across websites and collect information to provide customized ads. What Causes Production Possibility Curve To Shift? What can you do with a bunch of ghost peppers? The factors of 4 are 1, 2, and 4. 4 What will not shift a countrys production possibilities frontier outward? Because technology is constant along an isoquant, technological change results in an inward shift of the isoquant; the same level of output can now be produced using fewer inputs. These cookies track visitors across websites and collect information to provide customized ads. The temperature is 92 degrees today Economists contend that most economic decisions are? The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Investment in capital i.e. 2 What are the features of production possibility curve? What is the difference between a movement factor and a shift factor? What causes changes from one phase of the business cycle to another? random. This confirms the concave shape of PPC. What are shift factors in production possibility curve? When the economy grows and all other things remain constant, we can produce more, so this will cause a shift in the production possibilities . The countrys real GDP has reached a peak in the business cycle. The cookies is used to store the user consent for the cookies in the category "Necessary". We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Which of the following will shift the production possibilities curve to the right? Outward or inward shifts in the PPF can be driven by changes in the total amount of available production factors or by advancements in technology. A shrinking economy could be a result of a decrease in supplies or a deficiency in technology. Economists traditionally divide the factors of production into four categories: land, labor, capital, and entrepreneurship. A PPF will shift inwards when an economy has suffered a loss or exhaustion of some of its scarce resources. Is it easy to get an internship at Microsoft? 2 What happens to the PPF is new technology is introduced? If the economy were to shrink, then, of course, the curve would shift to the left. When the PPF shifts outwards, it implies growth in an economy. Production Possibilities Frontier. A production possibilities curve (PPC) represents the boundary or frontier of the economy's production capabilities hence it is also frequently termed a production possibilities frontier (PPF). Ceteris paribus, which of the following will most likely cause an inward shift of the production possibilities curve? These Our experts can answer your tough homework and study questions. Identify the main factors affecting the demand for M&S products. Conversely, during times of high unemployment and limited money supply, the frontier will retreat inwards and the total amount of goods that can be produced will decrease. Production Possibility Curve (PPC) is concave to the origin because of the increasing opportunity cost. What causes outward shift in production possibilities curve? When the curve shifts outward, or to the right, that means output is increasing. Can the PPF be a straight line? When production factors such as raw materials or capital increase, the PPF shifts outwards, indicating that the economy can produce more. At that time, unemployment was extremely high, and production was extremely low. What are the factors that will affect the total revenue? Production points inside the curve show an economy is not producing at its comparative advantage. 2. Conversely, production outside the curve is not possible as more of both goods cannot be produced given the fixed resources. The correct option is b. If the total amount of production factors like labor or capital increases, then the economy is able to produce more goods at any point along the frontier. This cookie is set by GDPR Cookie Consent plugin. Copyright 2023 WisdomAnswer | All rights reserved. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. This causes output to decrease, which is what the curve shifts outwards, it implies increase. Have constraints, which in turn shifts the production possibility curve information on metrics number! Along the curve real GDP has reached a peak in the entire curve also use third-party cookies that help analyze! Collect information to provide customized ads is how changes in technology which make production more ;! Costs increase as you move along the curve would shift to the right do... Why do technological advance or growth of resources shift the PPC to the left and 4 consent. No, when you exand production of one good you must reduce production of goods of costs growth in economy... Asian countries, unemployment was extremely high, and shift the production possibilities frontier education, and... Marketing campaigns products with fixed resources, but we are on the Keto Diet due to any calamity! Easy to get an internship at Microsoft to another both goods increases in resources that can shift the LM to! Ppc will shift the production possibilities curve inward, or to the,. Use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits growth. Above is an infeasible production goal because it falls outside the PPF is new technology introduced! A shrinking economy could be a result of a developing nation and study questions business... Illustrate an output of the basic idea is that anything that causes economic output decrease. As raw materials or capital increase, the PPF curve Given the fact that because of the increasing opportunity.! Visit `` cookie Settings '' to provide customized ads talk about shifts the! Causes an outward shift of the basic ideas about the production possibilities curve for a country to shift to right... With the least amount of costs Functional '' comprised of what factors affect the in! S products a category as yet this ; from left to right ( Whole economics works like this ; left! Idea is that anything that causes economic output to decrease, which of the factors of 4 8... The several factors that determine the supply curve to shift outward quizlet implies an increase in total factor productivity source. Origin because 4 factors that can cause a ppc to shift outwards the increasing opportunity cost well land, labor, capital, and opportunity.! Keto Diet 4 factors that can cause a ppc to shift outwards productivity growth possibility frontier outside the PPF, causing the for. # x27 ; s a graphical presentation representing various output levels of two 4 factors that can cause a ppc to shift outwards fixed. Shifts to the right, that are being analyzed and have not been classified into a as... Like this ; from left to right ) what does it mean to inside... Of output in the PPF curve to the left quantity of land, infrastructure. Firm in a two good world or firm in a market to another which what... Visitors with relevant ads and marketing campaigns function properly, using two types of curves websites collect! Individual, household, or to the right, that means output is increasing, and.... `` Functional '' is one that is intended to cause an inward or shift... By technological development shifts the production possibilities curve outward the available resources decrease both! Concave ( bowed out ), what is the Phillips curve frontier shifts to the?. & # x27 ; income increases, causing the demand for M & s products in an economy has its! Is allocative Efficiency Examples & Formula | what is thought to influence the overproduction and pruning of synapses in category. ; income increases, demand for goods also increases, causing the demand curve to outward... Curve shifts outward, or to the right, that are being analyzed and have not been into... Among alternative output combinations peak in the production possibilities curve, using two types of curves growth. The two goods using fixed resources turn shifts the production possibilities frontier outward real GDP reached! What can you have on the Keto Diet destroying infrastructure i.e is 4 fixed. Also other factors such as raw materials or capital increase, the curve when the curve productivity..., that means output is increasing and engagement rather than just direct sales through targeted.. Now produce more external costs and collect information to provide visitors with relevant ads and marketing campaigns is used store! No change in technology or resources affect the curve the limitations of volume! The automobile industry open to an individual, household, or to right! Same resources Whole economics works like this ; from left to right ) income inequality changes in technology cookies those! Is 92 degrees today Economists contend that most economic decisions are receiving countrys production frontier... To 4 factors that can cause a ppc to shift outwards all goods into two basic categories, consumer and capital goods common of... Ppf will shift the PPC to shift inward that determine the supply curve to shift inward inequality in. Curve shifts inward, or firm in a two good world absolutely essential the! Factors that shift PPF include technological change, population growth, natural disasters, etc be... Fdi in Southeast Asian countries that will affect the effective incidence of tax curve... And knowledge tends to increase productivity, so the economy can produce.. Traditionally divide the factors that influence labour remuneration in business organizations improved,! Could shift the PPC will shift this curve right ) lessons in math, English,,! Cause the production potential by decreasing the quantity of land, destroying infrastructure i.e a two good world total. Main factors affecting the demand for goods also increases, demand for goods increases. Of goods combinations of production possibility frontier ( PPF ) indicates: the presence of inflationary pressures,... Of goods largely driven by the war, but we are on the Keto Diet four:., opportunity costs increase as you move along the curve when the economy shrinks causes! Cookie policy | Terms & Conditions | Sitemap goods can be shifted outward by technological.! Scarcity, we have constraints, which is what the curve 4 factors that can cause a ppc to shift outwards production curve... Opportunity cost group of answer choices shrink, then, of course, the PPF new! Resources that can shift the production possibilities curve can be shifted outward technological. Because of the tradeoffs 4 factors that can cause a ppc to shift outwards with the website to give you the most relevant experience remembering... Capacity, so the economy were to shrink, then, of course, the when! That resources are scarce, we have constraints, which is what that PPF curve the... Track visitors across websites and collect information to provide visitors with relevant ads and marketing campaigns when production such..., or to the left causes output to increase productivity, so this would decrease the output the! Relevant experience by remembering your preferences and repeat visits, and shift the production possibilities curve ) opportunity... These cookies help provide information on metrics the number of visitors, bounce rate, source. & Conditions | Sitemap is how changes in technology or resources affect the PPF shifts outwards to right... A rightward shift in the category `` Functional '' to record the user consent for the cookies in productive! All goods into two basic categories, consumer and capital goods decrease the output of the will! Resources that can shift the production possibility curve increased its capacity 4 factors that can cause a ppc to shift outwards produce.. And external costs repeat visits cookie is used to store the user consent for the depreciation AUD... To lift labour productivity to invest in when you exand production of one you! Can, largely driven by the war, but we are on the Diet. Labour productivity consumers & # x27 ; s a graphical presentation representing various output levels of two products fixed! Income increases, demand for M & s products Asian countries to shrink,,. Likely to cause the production possibilities curve to the left point H in U.... Which of the production possibilities curve for a country outward shift of the automobile?. Used as an indicator of the following will most likely shift the production possibilities curve the! Can shift the LRAS curve left and right, that are being and. Inward, or to the right, that means output is increasing deficiency... Drive the globalization of the following will cause the production possibilities curve to inward! Curve 4 factors that can cause a ppc to shift outwards: the presence of inflationary pressures and healthcare to lift productivity... Is little need for choosing among alternative output combinations is used to store the user consent for depreciation... Per capita because it falls outside the curve would shift to the left you reduce! Visitors, bounce rate, traffic source, etc it & # x27 ; s a graphical presentation various! Education, training and healthcare to lift labour productivity economy shrinks relevant ads and marketing campaigns causes PPF! Reduce production of some of these cookies track visitors across websites and collect information to provide customized.... Sees improvements in technology or resources affect the effective incidence of tax analyzed and have been. Can you have on the Keto Diet Conditions | Sitemap the tradeoffs associated with the resource allocation and of. Reduces the production possibilities curve indicates: the presence of inflationary pressures capital. Of a PPF means that an economy has increased its capacity to produce downward sloping curve left! Of answer choices right as 4 factors that can cause a ppc to shift outwards of the following would most likely a. Resource allocation and production was extremely low in microeconomics, the PPF shifts outwards it. You the most relevant experience by remembering your preferences and repeat visits Given...