Answer: In order to answer this question, we have to clearly understand what a Production Possibility Curve is. From a microeconomic point of view, “the production possibility frontier represents the point at which an economy is most efficiently producing its goods and services and, therefore, allocating its resources in the best way possible” (Forbes Digital Company, 2008).  Therefore, we can firmly state that a nation’s production possibility frontier can shift both in the inward and outward directions, depending on a situation going on in a specific country. The possibilities curve illustrates the limits that an economy has, which drives us to a conclusion that in order to achieve efficiency, the proportion of produced goods and services must be regulated and managed correctly. Alternatively, the economy is going to shrink, as a result of a false allocation of its most vital resources and/or its ultimate production capabilities. Moreover, the decline of the economy, which consequently leads to the inward movement of the production possibility curve, can be caused by a shortage of the resources and inefficiency of implementation of high technologies in the production process.

Summary: The PPF (Production possibility frontier) can possibly shift inward, under the following conditions: lack of resources, inaccurate management and allocation of production, deficiency in technology.