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 Steve Jobs 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 the production process, which involves the conversion of inputs (capital and labor) into products (songs) that can be used in consumption. Option A is incorrect because profitable activities result in generating revenue and earning a profit. Option B is incorrect because being a start-up venture does not guarantee the conversion of resources into products. Option C is incorrect because demand refers to the willingness and ability of consumers to purchase a product, and it is not the same as the production process.

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