Final answer:
A wave of immigration that increases the nation's labor supply will shift the production possibilities frontier outward, as it enlarges the labor pool allowing for greater production capabilities.
Step-by-step explanation:
The factor that will shift the production possibilities frontier outward is C. Wave of immigration that increases the nation's labor supply. An increased number of workers, such as from immigration, grows the labor pool which can lead to an outward shift in the supply curve. This expansion in the supply of labor means that a nation can potentially produce more goods and services, hence the outward shift of the production possibilities frontier.
For instance, policies that encourage immigration will typically increase the supply of labor as more workers become available to contribute to the economy, representing a factor that can enhance economic growth. Conversely, factors like a decrease in the labor force, a rise in unemployment, or the destruction of buildings typically do not contribute to economic growth and would not shift the production possibilities frontier outward.