Short Answer 
The Production Possibility Curve (PPC) represents the potential output for two goods, shifting left for reduced capacity due to factors like natural disasters or labor shortages, and right for growth from technological advancements or economic expansion. These movements illustrate changes in an economy’s ability to produce goods and services.
Step 1: Understand PPC Movement
The Production Possibility Curve (PPC) illustrates the maximum output possibilities for two goods or services given fixed resources. It can shift in two directions: to the left or right. A leftward shift generally indicates a reduction in the economy’s capacity to produce, while a rightward shift indicates growth in production capabilities.
Step 2: Identify Causes of Leftward Shift
A leftward shift in the PPC may occur due to events that severely damage a country’s resources or infrastructure. Significant examples include:
- Natural Disasters: Events like earthquakes, tsunamis, or hurricanes can destroy critical infrastructure.
- Labor Shortages: A shortage of essential workers, such as instructors in education, can hinder production capacity.
Step 3: Recognize Causes of Rightward Shift
A rightward shift in the PPC indicates an increase in the productive capacity of an economy. Key factors contributing to this shift include:
- Technological Advancements: New technologies can improve efficiency and increase output.
- Economic Expansion: Opening new facilities, like medical clinics, enables higher production levels and better resource utilization.