Which of the following statements is true?

1. Scarcity refers to the situation when there is less supply of commodity in relation its demand.
2. The goods and services which are used to carry out production are called resources.
3. Scarcity is a problem which is faced by only developing countries.
4. According to Adam Smith, the problem of whether a commodity will sell in the market or not is the fundamental economic problem.

A and B

Scarcity is a fundamental economic problem which is faced by developing and developed countries alike. The problem of scarcity would exist even in the case of developed countries as their present wants are more than their increased resources and capability to produce. As resources are scarce and wants are unlimited the problem of making a choice is the fundamental economic problem in the economy.