Recently Apple Computer developed Apple's new iTunes Music Store, which offers more than 200,000 songs from five major record labels, for use with Apple's iPod and iMac. More than a million songs were downloaded the first week alone! In economic terms, CEO Tim Cook helped convert capital and labor inputs into products consumers use. Any activity that results in the conversion of resources into products that can be used in consumption is
A) not profitable.
B) a start up venture.
C) demand.
D) production.

Question

Quizplus · Accepted Answer

The activity described in the passage is production, which involves converting resources into products that can be used in consumption. This is a fundamental economic activity and a key driver of economic growth and development. Option A is incorrect because production can be profitable if it generates more revenue than the cost of producing the goods or services. Option B is incorrect because the passage does not provide any information about whether Apple's iTunes Music Store was a start-up venture. Option C is incorrect because demand refers to the willingness and ability of consumers to buy goods and services, not the production process itself.

Recently Apple Computer Developed Apple's New ITunes Music Store, Which