What factors might shift the PPC inwards?

If the country experiences more unemployment, then the unemployment rate goes up. That means the labor force is shrinking, so more people are not working and not being productive. This would decrease the output of the nation, and shift the production possibilities curve inward, or to the left.

What are the three 3 factors that could shift the PPC outward explain?

Ways of causing an outward shift of a country’s production possibility frontier:

• Investment in capital i.e. plant and machinery and new technology.
• Inward migration of younger, skilled workers.
• Discovery of new natural resources.
• Improved education, training and healthcare to lift labour productivity.

How do you move the PPC curve?

Shifts in the production possibilities curve are caused by things that change the output of an economy, including advances in technology, changes in resources, more education or training (that’s what we call human capital) and changes in the labour force.

What shifts a PPC curve outward?

The PPC of an economy shifts outward if: Resources used in production such as coal, oil, and population in the economy increase. The economy sees improvements in technology which make production more efficient; more goods can be produced with the same resources. Amount of specialization and trade increases.

What are the 4 factors?

Economists traditionally divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

Can PPF shift inward?

An inward shift of a PPF A PPF will shift inwards when an economy has suffered a loss or exhaustion of some of its scarce resources. This reduces an economy’s productive potential.

Which factor lead to a shift of PPC towards right hand side?

1. There is an increase in the resources used in production such as coal, oil, etc . 2. The economy sees an increase in technological developments leading to better production.

What are the 4 factors of production?

Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.

How a country PPC depends on factors of production?

A production possibility curve (ppc) shows the combination of outputs that a country can produce when fully employing its resources. Factors include land, labour, capital and enterprise. The way the factors are combined to work productively will determine the quantities of different outputs produced.