What does a country's production possibilities depend on?

A country's production possibilities curve relies on resources and technology. It deals with the available production in a nation's economy at a specific time with specific resources and technology.

If a society doesn't have specific resources or technologies, it can not produce anything. For example, African nations always had the resources needed to produce items. However, they didn't always have the technology to produce finished products. Unfortunately, African nations often relied on agricultural products, while European nations extracted the natural resources and created the finished products.

In terms of a PPC, if a point is located inside of the current curve, it means that a society is underutilizing its resources and technology (often during high unemployment), but if the point is located on the curve, it means that the economy is working very efficiently. If a point is located outside of the curve (on the right), it indicates that a society has developed a newer technology or more resources, which results in a shift of the entire curve.