Two factors that may shift the Production Possibility Frontier of an economy away from origin (to the right ) are: ltBrgt (a) Increase in resources available to an economy (natural, physical or human resource). New resources may increase the output potential in an economy resulting in shift of PPF away from origin.
(b) Improvement in Technology: When technology improves, the production potential increases, i.e., economy may be able to produce more output using existing resouces efficiently.
OR
This problem involves selection of goods adn services to be produced and the quantity to be produced of each selected commodity.
The problem has two aspects:
(i) What possible commodities to produce, i.e., which consumer goods and which of the capital goods are to be produced. In the same way, economy has to make a choice between civil and war goods.
(ii) After deciding the goods to be produced, economy has to decided the quantity of each commodity, that is selected.