Question

What are the 2 internal reasons why a PPC will move outward?

Answer 1

Ways of causing an outward shift of a country's production possibility frontier:

Investment in capital i.e. plant and machinery and new technology.

Inward migration of younger, skilled workers.

Discovery of new natural resources.

Improved education, training and healthcare to lift labour productivity.

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Answer 2

Answer:

So if there is increase or decrease in the supply of the resources used for production, it is reflected in the amount of output. Therefore, the production possibility curve shifts to the right or to the left.

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