Scaling for various resolutions


Good day,

I'm wondering how games approach this problem, scaling.

Is there a standard resolution to start with ?
I enjoy the fullscreen view, which means I could make the room dimensions anything and set it to fullscreen in the end no matter the players resolution which is great.

1) But how do you compensate for stretching and loss of quality ?

The best approach I can imagine and the most costly and time consuming would be to make Graphics and Artwork at difference sizes depending on the resolution.

or rather make it really large then instead of stretching art, it will just reduce the sizes which as far as I'm aware provides the least amount of loss in quality.

2) What is a standard default resolution for your game room ?

or me I can imagine setting the game room to the size of my monitor, which would mean when I go fullscreen it'll just remove windows GUI and there won't be any stretching unless a player has a larger resolution on their monitor.

I feel that this is a key point to consider when creating a game.