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