Lance Briggs a six time pro bowl linebacker, for the Chicago Bears, has requested a trade. He feels underpaid for the remaining three years of his contract relative to other linebackers in the NFL. The Bears are 19.3 million dollars under the NFL salary cap but have not commented on Briggs’ request. The Bears can either allow Briggs to seek a trade or resign him to a higher salary.
There are several concepts from class that apply to this article. The Bears have a choice to resign Briggs to a higher contract or trade him. As studied in class when choices are made there is always an opportunity coast. Opportunity cost is the cost of a decision or the next best option. This is illustrated in the saying “there is no such thing as a free lunch.” In the Bear’s case the opportunity cost is the option they do not choose.
The concept of a command and market economy can also be seen in this article. Lance Briggs has the freedom to sell his labor to any team in the NFL. This demonstrates a core principle of a market economy where individuals own the factors of production. In the NFL there is also a salary cap for all NFL teams. This is a core principle of a command economy. A salary cap would act as a quota set by a central authority or the NFL. A quota is a minimum amount of production set by a central authority for all workers. The salary cap in the NFL is a minimum amount of money that all teams must spend. The NFL would be classified as a mixed economy. They take ideas from a command and mixed economy to meet their needs similar to the United States.
Lance Briggs a six time pro bowl linebacker, for the Chicago Bears, has requested a trade. He feels underpaid for the remaining three years of his contract relative to other linebackers in the NFL. The Bears are 19.3 million dollars under the NFL salary cap but have not commented on Briggs’ request. The Bears can either allow Briggs to seek a trade or resign him to a higher salary.
There are several concepts from class that apply to this article. The Bears have a choice to resign Briggs to a higher contract or trade him. As studied in class when choices are made there is always an opportunity coast. Opportunity cost is the cost of a decision or the next best option. This is illustrated in the saying “there is no such thing as a free lunch.” In the Bear’s case the opportunity cost is the option they do not choose.
The concept of a command and market economy can also be seen in this article. Lance Briggs has the freedom to sell his labor to any team in the NFL. This demonstrates a core principle of a market economy where individuals own the factors of production. In the NFL there is also a salary cap for all NFL teams. This is a core principle of a command economy. A salary cap would act as a quota set by a central authority or the NFL. A quota is a minimum amount of production set by a central authority for all workers. The salary cap in the NFL is a minimum amount of money that all teams must spend. The NFL would be classified as a mixed economy. They take ideas from a command and mixed economy to meet their needs similar to the United States.