PPF shifts - N

Factors affecting the outwards shift of a PPF curve

anything to increase FOP

investment in capital (plants and machinery)

discovery of new materials

Immigration of skilled workers

improved education, training and healthcare to lift labour productivity

innovations that increase output per unit and reduce resource wastage

Factors affecting the inward shift of the PPF Curve

anything to decrease FOP

Damaging effects of natural disasters such as droughts, tsunamis, floods and earthquakes

destruction of FOP caused by a civil war and other forms of conflict that last few many years

large scale of emigration

a trend decline in the productivity caused by a persistent economic recession

draw a specialisation curve and how it works

there has been an improvement in the quantity/quality of FOP that only benefits one of the goods meaning that they are specialised

specialisation factors

Improvements in technology

new techniques

beter trained/skilled labour