Page "Production–possibility frontier" Paragraph 18

The two main determinants of the position of the PPF at any given time are the state of technology and management expertise ( which are reflected in the available production functions ) and the available quantities and productivity of factors of production.

Only points on or within a PPF are actually possible to achieve in the short run.

In the long run, if technology improves or if the productivity or supply of factors of production increases, the economy's capacity to produce both goods increases, i. e., economic growth occurs.

This increase is shown by a shift of the production-possibility frontier to the right.

Conversely, a natural, military or ecological disaster might move the PPF to the left, in response to a reduction in an economy's productivity.

Thus all points on or within the curve are part of the production set, i. e., combinations of goods that the economy could potentially produce.