Change in the quantity or quality of resources. 2. Every choice the society/individual makes has an opportunity cost – to get more of one good, we need to give up some of another good – every choice has a tradeoff. Production possibility curves With the given set of resources (factors of production), an economy can manufacture either 2000 laptops or 80,000 books or a combination of these both products. This is determined by the quantity and quality of resources available to it, and the state of technology. This is shown in Fig. Shifters of the Production Possibilities Curve (PPC) There are several factors that can cause the production possibilities curve to shift. As a rule of thumb, natural factors generally affect how much sellers can produce, while social factors have a greater effect on how much they want to produce. Production Possibility Curve. 3. Given the supplies of factors, if the productive efficiency of the economy improves by technological progress, its production possibility curve will throughout shift outwards to P 1 P 1 . A basic definition of economic growth is required along with knowledge of the factors which might cause the production possibility frontier to shift outwards OR inwards. Trade. The removal of trade barriers or also known as free trade is not exempt from this list of things that affect an economies production possibility curve.Reduction in trade barriers can cause a country’s production possibility curve to shift outward. We normally draw a PPF on a diagram as concave to the origin. Points within the curve show when a country’s resources are not being fully utilised Production Possibilities. Whenever one of those factors causes supply to decrease, the supply curve shifts to the left, whereas an increase in supply results in a shift to the right. 2. Production possibilities curve demonstrates that: There is a limit to what the society/individual can achieve, given the existing institutions, technology and resources. What Are Two Factors That Would Cause The Production Possibilities Curve To Shift Outward. Shifters of the Production Possibilities Curve (PPC) There are several factors that can cause the production possibilities curve to shift. Distinguish between movements along and shifts in production possibility frontiers. Resources used in production such as coal, oil, and population in the economy increase. These A production possibility frontier (PPF) is a curve or a boundary which shows the combinations of two or more goods and services that can be produced whilst using all of the available factor resources efficiently. economies have a production possibility curve and there any many different things that effect it. 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