When there is full and efficient utilization of resources production combination lies on the boundary of the Production Possibility Curve.

• When there is under and inefficient utilization of resources, production combination
  lies on the left side of the Production Possibility Curve.
• Scarcity can be shown by a point on the right hand side of the Production Possibility
  Curve.
• The point which moves from the left side to the Production Possibility Curve, can
  increase production of both goods without opportunity cost
• The point which moves from the Production Possibility Curve to the left, shows
  decrease utilization of resources and efficiently.
• Production Possibility Curve can be shifted to the right due to the increase in
  capacity of production

The factors of increase in capacity of production are given below.

• Increase in factor endowments.
• Increase in productivity.
• Production Possibility Curve can be shifted to left side due to the decrease in the
  capacity of production

The factors of decrease in capacity of production are given below.

• Decrease in factor endowments.
• Decrease in productivity.
• Outputs received from the inputs are known as normal productivity

The following factors affect determination of productivity of the factors of production

• Technology
• Management
• Human Capital
• Division of labor and specialization

• Factor productivity can be computed as follows :
  Factors Productivity = Outputs / Inputs

• Productivity of the various factors of production can be computed as follows:
  Productivity of Land = Total output / Amount of land units