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
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
Pruning
Hooks
C
B
Points A, B, and C tell us something different about what’s going on in a society:
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.
A
Spears

Football Economics:
The Moving Frontier
A’s per semester
A
C
B
Points A, B, and C tell us something different about the athlete:
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.
Touchdowns per semester

Football Economics:
The Moving Frontier
Gold
Medals
C
B
A
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.
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
Gold
Medals
B
C
A
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.
Entertaining
NFL Teams

Football Economics:
The Moving Frontier
Pruning
Hooks
B
C
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.
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