What is an outward shift of the production possibilities curve represents?

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2026-03-06 06:15

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An outward shift of the production possibilities curve (PPC) represents an increase in an economy's capacity to produce goods and services. This shift can occur due to factors such as technological advancements, an increase in resources, or improvements in workforce skills. Essentially, it indicates that the economy can produce more of one or both goods without sacrificing production of the other, reflecting enhanced efficiency or growth.

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