How can the PPF be moved in one direction or another?  

Expert Answers

An illustration of the letter 'A' in a speech bubbles

A production possibility frontier (or production possibility curve) is a measure of a country's economic potential.  So what this question is really asking is "how can a country's economic potential increase or decrease?"

As you can see if you look at the economic growth link below, there are many ways that economic growth (moving the PPF to the right) can be achieved.  But basically, they boil down to the following things:

  • A country can move its PPF by acquiring more resources.  If the country's population grows or if its people become better educated, it has more human resources.  If it discovers new deposits of some important mineral, it has more resources.
  • A country can use its resources more efficiently.  This often happens through technological change.  When a country becomes industrialized, for example, the machines help it to get more out of each person's labor.

Follow the links below (especially the economic growth one) for more information.

Approved by eNotes Editorial Team

Posted on

Soaring plane image

We’ll help your grades soar

Start your 48-hour free trial and unlock all the summaries, Q&A, and analyses you need to get better grades now.

  • 30,000+ book summaries
  • 20% study tools discount
  • Ad-free content
  • PDF downloads
  • 300,000+ answers
  • 5-star customer support
Start your 48-Hour Free Trial