PPC is a diagram which represents if there is a small type of scarcity or change in opportunity cost , basically it checks weather a production of a item is lacking or not , it also shows things which are not possible economically.
Production Posibility Curve Introduction
The production possibility curve is a diagram that represents a opportunity cost of any goods of service
Diagram Example
Now lets take an example i am a person who catches fishes and plucks apples , the first day i caught 4 fishes and 100 apples but the second day i plucked 200 apples but caught 3 fishes , at the third say i caught 2 fishes and plucked 250 apples but at the fourth day i caught 1 fish and plucked 300 apples , so now lets see this at the chart :
As you can see here this was a diagram shown that how i managed my Business of plucking apples and fishing but lets look at the next diagram
As you can see i have marked a random day of me collecting 200 apples and collecting 2 fishes , it the type of production appears inside the chart it means that they are lacking resources and the dot you see outside which says collecting 250 apples and 4 fishes in a day which is impossible. The line you see from 4 to 300 are the most effiecient basically they are representing the best you can do.
Question answer
well one of the reasons could be over production of a particular good the country depends on , its impact on economy would be to harsh , as we saw in the 20th century at America when the economy crashed on stocks due to its over trading which caused the great economic crash which led to the great depression , well the economy may go down if the country relies on that good.
the changes that could lead to these shifts , i would say continuing the same production for a long time which may cause over production and lead to deflation in the economy
What factors can cause a shift in the production possibility curve? Provide at least two examples of events or changes that could lead to such shifts and explain their impact on an economy.