Wheat production and scarcity

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Wheat production and scarcity

Economic is a social science which focuses on human behaviors and deals with scarcity. So economist study scarce resources to satisfy unlimited human wants, and this definition is deals with two things
1- The scarce resources
2- Unlimited human wants
Scarcity is the central of economic problem and the scarcity means the available resources are not sufficient to produce all goods and services that are wanted
A society’s resources include natural endowments such as land, forests and minerals, human resources and manufactured aids to produce such tools, machinery and buildings which called factors of production
It is a country with high level of income per capita and rich in resources but has scarcity to produce everything so it has absolute advantage to produce some goods but not all goods and has scarcity in water to produce wheat so it has no comparative advantage to produce wheat but it has comparative advantages to produce dates
The country has comparative advantage when they can produce the product or service at the lowest possible of opportunity cost.
So It can produce wheat but not at lowest opportunity cost and can produce dates at lowest opportunity cost so they should to choose between the two goods and get benefits of trade by exporting dates and importing wheat.
Production possibility frontiers (PPF)
Now let’s take an example of the production possibility frontiers in it between wheat and dates. The production possibility frontiers is the possibility to produce either wheat, dates or combination between both goods if they use all factors of production efficiently
A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.). The PPF assumes that all inputs are used efficiently.

Lets say that the product A is the wheat and the product B is the dates, the red curve is the PPF all the points at the curve such as A,B,and C are efficient

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