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

The correct answer is option 3: A and B

Here's a breakdown of why:

Scarcity refers to the situation when there is less supply of a commodity in relation to its demand. This is the correct definition of scarcity. It means that there are not enough resources to satisfy everyone's wants and needs.

The goods and services which are used to carry out production are called resources. This is also true. Resources are the inputs used to produce goods and services, such as land, labor, capital, and entrepreneurship.

Scarcity is a problem faced by all economies, not just developing countries. This is false. Scarcity is a fundamental economic problem that exists in all societies, regardless of their level of development.

According to Adam Smith, the problem of whether a commodity will sell in the market or not is not the fundamental economic problem. This is false. Adam Smith argued that the fundamental economic problem is how to allocate scarce resources to satisfy unlimited wants and needs.