Question

factors that lead tothe shift of the PPF tothe left​

Answer 1

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 labor force.

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Answer 2

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. It's a model and a concept that looks at only two goods at a time. For example, what combination of cars and computers should a nation produce?

The Production Possibilities Curve

The production possibilities curve illustrates all the possible combinations of how we can produce these two goods given the constraints we have, including the fact that resources are scarce. The question we're answering in this lesson is, 'What causes the production possibilities curve to shift?'

Before we answer this, let's review some of the basic ideas about the production possibilities curve, using two types of curves. Let's say we have a production possibilities curve showing the production of two goods: cars and computers.

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