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What are the Factors that can shift a production possibility curve?
Wiki User
∙ 12y ago
Outwards
Discovery of Natural Resources
Technological innovation
increase in the labour (fall in natural rate of unemployment)
improvement in productivity and efficiency
Inwards
Brain drain
a fall in the labour force
depletion of the supply of the raw materials
depletion of the capital stock due to a natural disaster etc
Wiki User
∙ 12y ago
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When does production possibility curve shift to the right?
due to economic growth
When new technology is introduced the production possibility curve will shift which way?
The right.
What happens to supply when technology improves?
when technology improves, PPC (production possibility curve ) will shift rightward and the total production in an economy will increase.
What are the factors that will shift the demand curve?
All factors other than price will shift the demand curve. Price moves along the demand curve.
What factors cause the supply curve to shift?
Change in: production costs; production environment; price of related good; law; labour demand/price.
When does production possibility curve shift to the right?
due to economic growth
When new technology is introduced the production possibility curve will shift which way?
The right.
What happens to supply when technology improves?
when technology improves, PPC (production possibility curve ) will shift rightward and the total production in an economy will increase.
What are the factors that will shift the demand curve?
All factors other than price will shift the demand curve. Price moves along the demand curve.
What factors cause the supply curve to shift?
Change in: production costs; production environment; price of related good; law; labour demand/price.
What is the effect of war on a production possibility frontier?
production possibility frontier shift leftward
What factors that would shift the production possibility curve inward or outward?
An outward shift would result when there is an improvement in technology that would benefit both types of goods. An increase in the workforce which would result in mor factor resources being exploited. An improvment in productivity and effeciency in goods production. An inward shift would result when there is unemployed resources or when the economy uses resources inefficiently
How do you illustrate a production possibility frontier?
By using production possibility curve,country is producing both industrial and agricultural product using available resources, technology country operating inside production possibility curve shows the levels underdevelopment, which will be result under utilisation of resources ,poor technology. The country operating outside production possibility curve show the levels of development in economy, however, an economy can produce both industrial and agricultural using the resources available without effecting the production each . A shift from inside to outside it may be result of discovering of new resources, improved technology .
Cause the aggregate demand curve to shift outward?
Real shocks will determine the direction of the long-run aggregate demand curve. A real shock is an event or certain factors that cause more or less production. A war, for instance will halt factories from producing goods and will cause the aggregate demand curve to shift left. Higher production will lead to an outward shift to the right.
Can massive unemployment shift the production possibility curve inward?
Massive unemployment will shift the PPC to the left because labour force remains underutilized. The economy will produce inside the PPC indicating underutilization of resources.
How would the quality of education increase affect the location of a country's production possibilities curve?
the quality of education that increases will improve the human capital which is one of the factors of production. therefore, the pp curve will shift outwards against potential growth.
How can you reach beyond the production possibility frontier?
With the introduction of new technology and new resources will shift the production possibility frontier.
