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A PPC is based on the assumptions that technology used remains constant, and the quantity of resources remain constant also. So the things that cause shifts in the PPC itself are: * Technological change (i.e. A new invention makes production more efficient which increases output). * Specialisation - where individuals are placed into positions where they are best suited to the task or have knowledge of the task. It could even be firms specialising in what they do best and concentrating their resources on one particular good or service.

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What is it that causes a production possibilities curve to shift outward or inward?

Improvement of management efficiency.


When does production possibility curve shift to the right?

due to economic growth


An increase in technology will cause the production possibilities curve to?

shift outward


Why supply curve increase or decrease?

The supply curve can shift due to changes in production costs, technology, or the number of suppliers. An increase in production costs (e.g., higher wages or raw material prices) typically causes the supply curve to decrease (shift left), indicating a reduced quantity supplied at each price level. Conversely, improvements in technology or an increase in the number of suppliers can lead to a decrease in production costs, causing the supply curve to increase (shift right), indicating a greater quantity supplied at each price level.


When new technology is introduced the production possibility curve will shift which way?

The right.


What causes technology supply curve to shift?

a change in amount of goods available


Which will not ceteris paribus causes the demand curve for good A to shift?

A change in the price of A.


Specialization and international trade will?

Result in a rightward shift in a nation's production possibilities curve.


A reduction in the level of unemployment would have which effict with respect to the nation's production possibilities curve..........?

It would not shift the curve; it would be represented by moving from a point inside the curve toward the curve.


What are the Causes of right shift of oxygen dissociation curve?

change in pH , temp. carbon dioxide 2,3 BPG shifts the curve


Any improvement in overall production technology that permits more output to be produced with the same amount of inputs causes?

A rightward shift of the supply curve so that more is offered at each price.


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.