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Mr. Clifford introduces the production possibilities curve (PPC) in his economics tutorial, emphasizing its importance for understanding potential production outcomes of two goods. He illustrates the concept using a table that compares the production possibilities of videos and hats. By dedicating all his time to making hats, he can produce 30 hats in a week using a loom. The tutorial aims to engage students with practical examples to clarify the PPC's significance in economics.