Final answer:
If an economy's production possibilities curve shifts outwards, it means that the economy has the potential to produce more goods and services.
Step-by-step explanation:
If an economy's production possibilities curve shifts outwards, it means that the economy has the potential to produce more goods and services. This shift can occur due to improvements in technology, increased availability of resources (such as labor and capital), or more efficient use of existing resources. When the production possibilities curve shifts outward, it indicates that the economy has the ability to produce a larger quantity of all goods, or at least more of some goods without producing fewer of others.