PPF shifts - N

PPF shifting right/outwards

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

PPf shifting left/inwards

Anything to decreases 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

there has been an improvement in Q2 of FOP that only benefit good x meaning that they have specialised in that area

Specialisation:

improvements in technology

new techniques

better trained/skilled labour