Introduction of Micro-Economics — Economics STD 11 Commerce — Question

A production possibility curve is a curve indicating various possibilities of two goods which can be produced by using available resources and the given level of technology. It shows that all the available resources and technology are optimally utilised if a country is producing maximum goods and services.
Yes, a production possibility curve can shift. It can shift under following scenarios.

1. When there is a change in availability of resources: Production Possibility Curve (PPC) shifts to the right when there is an increase in availability of resources. On the other hand, when there is a decrease in availability of resources, Production Possibility Curve (PPC) shifts to the left.
2. When there is a change in technology level: Production Possibility Curve (PPC) shifts to the right when there is an advancement of technology. In case of deterioration of technology, PPC shifts to the left.