Football Economics:
The Moving Frontier
Change and the PPF
The Production Possibilities Frontier examines a simple economy or a simple personal
choice where only two options are available.
The shape of the frontier is a visual demonstration of the trade-off between the two
options. It might be pruning hooks versus spears or TD’s versus A’s, but in each case the
line tells us something about capacity and opportunity cost.
The actual production of the economy (or athlete) in relation to the frontier tells us if the
economy (or athlete) is efficient.
The way the frontier shifts tells us something about technology, costs and other factors
that change opportunity costs and/or productive capacity.
Football Economics:
The Moving Frontier
PPF: Why the curved shape with increasing opportunity costs?
Some resources (land, labor, capital, entrepreneurship) are
specialized to certain products.
Product Y
The first units of any product are produced by those resources
that are specialized, thus the opportunity costs of the first units
are relatively low.
As more of a particular product is produced, non-specialized
resources are used in the production process.
These non-specialized resources have more alternative uses and
this means the opportunity costs of using them is higher. This
means fewer units of something else is produced.
Product X
Football Economics:
The Moving Frontier
Olympic Athletes or Football Players
Gold
Medals
Some athletes (San Diego QB Philip Rivers or Gymnast McKayla
Maroney) may only be elite at their current sport.
Philip Rivers skipping the 100 M Dash Olympic Trials or McKayla
Maroney not trying out for Nose Tackle with the Chargers does not
impact production.
If we move Gold Medal Decathlete Ashton Easton out of the Olympics
to play for the newly created Wichita Fighting Farmers, we lose one
medal.
If we move the starting offensive line for the Giants and the Jets to
Olympic power lifting, they might win a medal but it will come at the
cost of creating injuries to Tim Tebow and Eli Manning, thereby
reducing the number of entertaining NFL teams.
Entertaining
NFL Teams
Football Economics:
The Moving Frontier
The PPF, Efficiency and Potential in Society
Points A, B, and C tell us something different
about what’s going on in a society:
Pruning
Hooks
A:
This combination of hooks and spears is
possible but some resources are not at
work. This is an inefficient place for
society because more of either or both
are possible at this point.
B:
This combination is efficient because no
resources are idle.
C:
This combination is not possible in
society. However, it might be
temporarily obtained due to heavy
government borrowing, monetary
inflation or other special circumstances.
C
B
A
Spears
Football Economics:
The Moving Frontier
The PPF, Efficiency and Potential in a College Athlete
Points A, B, and C tell us something different
about the athlete:
A’s per
semester
A:
This combination of A’s and TD’s is
possible but he is idle or misdirected too
often. This is an inefficient place for the
athlete because more of either or both
are possible at this point. If his coach
realize it, he’ll be running wind sprints.
B:
This combination is efficient because he
is reaching his potential. Whether or not
it’s the ‘right’ combination, is a different
question that his coach and his family
will care deeply about.
C:
This combination is not possible through
legal and ethical means.
C
B
A
Touchdowns
per semester
Football Economics:
The Moving Frontier
A reduction in the PPF
Gold
Medals
Let’s assume something dramatic happens in
society and the overall number of athletes in a
society is substantially reduced, perhaps a
large war or perhaps a change in parental
preferences toward raising musicians rather
than athletes.
C
B
A
In this case, the PPF shifts to the left, or
reduces. This makes point A an efficient point
while points B and C are now unattainable.
In the general economy, a reduction in the
PPF might be caused by a large-scale crop
failure, an intense outbreak of crime, or an
increase in the number of federally required
vacation days.
Entertaining
NFL Teams
Football Economics:
The Moving Frontier
An increase in the PPF
Gold
Medals
C
B
Let’s assume something dramatic happens in
society and the overall number of athletes in a
society is substantially increased, perhaps a
minority group that used to have limited
access to training and competition now gains
the necessary access.
In this case, the PPF shifts to the right, or
increases. This makes point C an efficient
point while points B and A are now inefficient.
Productivity growth through technological
improvements would have a similar impact in
the general economy.
A
Entertaining
NFL Teams
Football Economics:
The Moving Frontier
An improvement in producing one good.
Pruning
Hooks
Finally, consider a technological advance or
any resource or productivity improvement that
only impacts one of the two items. If we are
better at making spears due to a more efficient
spear factory, we will be able to have more
spears while still maintaining most, if not all,
of our hook production.
B
C
In this case, the PPF shifts to the right, or
increases. This makes point C an efficient
point while points B and A are now inefficient.
A
Spears