Yes, the Production Possibility Frontier (PPF) can shift. This occurs when there is a change in the economy's available resources or a change in technology. The PPF is a graphical representation of the maximum output combinations of two goods that an economy can produce with its available resources and technology.

Factors that can cause the PPF to shift are:

1. Change in available resources: When an economy receives more resources, it can produce more goods and services. This results in an outward shift of the PPF. Conversely, a decrease in resources leads to an inward shift of the PPF.

2. Technological advancements: Technological advancements refer to the improvement in the way production is done. Such advancements lead to an increase in production efficiency, which results in an outward shift of the PPF.

Diagrammatic representation of PPF shift

To illustrate the shift, let us consider an economy that produces only two goods, guns and butter. The PPF for this economy is shown in the diagram below:


Suppose that there is a technological advancement in butter production, which increases the efficiency of producing butter. This results in an outward shift of the PPF, as shown below:


As seen in the diagram, the economy can now produce more butter than before, while still producing the same amount of guns. Alternatively, the economy can choose to produce more guns than before, while still producing the same amount of butter. This shift indicates that the economy can produce more goods and services than before, given the same amount of resources.

Conclusion

In conclusion, the PPF can shift due to a change in the economy's resource availability or technological advancements. A shift in the PPF indicates an increase or decrease in production efficiency, resulting in an increase or decrease of the economy's production capacity.