1.2 List and discuss the two main factors of economic growth according to the production possibility frontier model. 0'. Technological change > Technological change is the development of new goods and of better ways of producing goods and services '1' Capital accumulation > Capital accumulation is the growth of capital resources, which includes human capital. To use resources in research and development and to produce new capital, we must decrease our production of consumption goods and services More guidelines of the two main factors of economic growth according to the production Eossibiligy frontier model 0 0.0 Economic growth has two meanings: Firstly, and most commonly, growth is defined as an increase in the output that an economy produces over a period of time, the minimum being two consecutive quarters. The second meaning of economic growth is an increase in what an economy can produce if it is using all its scarce resources. An increase in an economy's productive potential can be shown by an outward shift in the economy's production possibility frontier (PPF). The simplest way to show economic growth is to bundle all goods into two basic categories, consumer and capital goods. An outward shift of a PPF means that an economy has increased its capacity to produce. Shifting a PPF Trade allows countries, individuals, or firms to reach points outside their PPF. In addition to trade, there are some other factors that shift a countries PPF, allowing an change in attainable output. These factors include: > A Shift in Technology - If you were to invent a computer system that showed the location of crabs and pineapples on the island, you would be able to produce more of both goods, shifting the PPF outward. > More Education or Training - If you were to become more skilled at harvesting pineapples or crabs, your attainable output would increase, shifting the PPF outward. > Natural Disaster - If disaster strikes, and pineapples or crabs become less plentiful, your nttninnl'tln nntnnt \"Innl thrpncn chiffinn fl'm DD]: inumrr'l