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Mr. Clifford introduces the concept of the production possibilities curve in economics, explaining that points inside the curve are inefficient, on the curve are efficient, and outside the curve are unattainable with current resources. The curve can shift due to changes in the quantity or quality of resources, or changes in technology. For example, an increase in cars and corn production in 1920 demonstrates how the curve can shift. Shifts in the curve are important in both micro and macroeconomics.
