Final answer:
Long run economic growth and an outward shift of the Production Possibilities Frontier (PPF) can be caused by various factors, including efficiencies in resource usage, increases in labor and capital, and improvements in technology.
Step-by-step explanation:
Factors that can cause long run economic growth and an outward shift of the Production Possibilities Frontier (PPF) curve include increases in resource quantity and quality, such as more labor and more capital, improvements in technology, and better education and training. More specifically, these factors contribute to higher productivity, which enables an economy to produce more goods and services with the same quantity of resources. Technology plays a pivotal role, as new production techniques can lead to more efficient processes, thereby reducing costs and improving output, which shifts the long-run average cost curve and alters economic structures. An outward shift of society's PPF indicates that it can afford more of all goods.
Reasons for Outward Shift of PPEfficiency improvements: By producing on the PPF, societies make full use of their resources and eliminate Growth in resources: An increase in factors such as labor and capital contributes to a larger economy and an outward shift of the PPF.Technological advancements: New technologies increase production capacity with the given resources, pushing the PPF outward.An outward shift of the PPF over time also indicates productive efficiency and the potential for increased allocative efficiency, which reflects a society's preference for a mix of goods. International trade, powered by countries' comparative advantages, is another catalyst for growth in overall production.