The production possibilities curve shifts outward when

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The production possibilities curve shifts outward when there is an increase in resources or technology. This allows for more goods and services to be produced, improving the economy's overall production capacity. The law of increasing additional cost takes hold when the economy produces beyond its capacity, leading to higher costs and inefficiencies. The choice of producing more consumption goods over productive investment in equipment would lead to a tradeoff and could result in a shift inward of the production possibilities curve.

The Production Possibilities Curve Shifts Outward When