Question

What two main things might cause the Production Possibilities Frontier to expand (shift outward)?

Answer 1

The two main things that cause the PPF to expand are : An improvement in the the production methods and technology, and increase in the productive inputs like labor force or capital. With technological improvements the economy can produce higher amount of goods using the same amount of inputs and thus the PPF expands outwards. An increase in the labor force or other production inputs allows the economy to expand its production capacity and employ more resources and thus the PPF shifts outwards.