Choose the correct statements from the following.

(A) The collection of all possible combinations of goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called the production possibility frontier.
(B) Slope of production possibility frontier is called marginal opportunity cost.
(C) In positive economic analysis, we study how the different mechanisms function.
(D) Scarcity of resources gives rise to the problem of choice.

Choose the correct answer from the options given below:

(B), (C) and (D) only

The correct answer is Option (4) →(B), (C) and (D) only

(A) The collection of all possible combinations of goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called the production possibility frontier. This is incorrect. The collection of all possible combinations of the goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called the production possibility set of the economy.  The production possibility frontier (PPF) refers specifically to the boundary of that set — i.e., the maximum possible combinations that can be produced.
(B) Slope of production possibility frontier is called marginal opportunity cost. This is correct. The slope of the Production Possibility Frontier at any point represents the rate at which the production of one good must be sacrificed to produce an additional unit of another good. This rate is known as the Marginal Opportunity Cost (MOC) or Marginal Rate of Transformation (MRT).
(C) In positive economic analysis, we study how the different mechanisms function. This is correct. In positive economic analysis, we study how the different mechanisms function, and in normative economics, we try to understand whether these mechanisms are desirable or not.
(D) Scarcity of resources gives rise to the problem of choice. This is correct. The fundamental economic problem is scarcity, which means that human wants for goods, services, and resources exceed what is available. Because resources (land, labor, capital, entrepreneurship) are limited, societies and individuals must make choices about how to allocate these scarce resources among competing and unlimited wants. This necessity to choose is the core problem that scarcity creates.