Tuesday, May 6, 2008

Production Possibilities...A Better Example

Guns vs. butter is so last century. How about school lunches vs. military spending? Or food vs. gasoline? Jason Welker makes a good point on the first. (Link no longer available.) But our quest for renewable energy generated the second. There seems to be a growing consensus that the drive to add ethanol to the fuel mix has impacted commodity markets. That was our choice. Now we face the cost.

But lets move the question to the local and bring forward the issue of opportunity cost. I wonder how many schools will cut sports budgets because of team travel costs before reducing the quality of their school lunch programs? (And what would be the response if they did?) I don't know. But Jason's post got me wondering. Your thoughts?

3 comments:

Andrew H. said...

My dissertation adviser always used guns and roses for his production possibilities frontiers in his intro micro course. I still run into his students here, there, and everywhere who talk about the blaring Guns and Roses musical and his PowerPoint guns and roses production possibilities frontier.

My students were always treated to the production possibilities frontier for Munchkin Land, a two-good economy producing lullabies and lollipops. They've never forgotten that one either.

Tim Schilling said...

I must admit, I like your choices as well. (G&R rules!!!)

Thanks for the comment.

Mike Fladlien said...

there's no way sports transportation will be cut in muscatine....our community has deep pockets when it comes to sports...as a wrestling coach for 30 years, i don't believe the sports is life metaphor...i believe that sports allows a parent to live vicariously through a third party...sports will always be sponsored here...