What part of speech is the underlined word?encryption

When we say encryption product, the word encryption modifies the noun product. So in this case, encryption is an adjective. It's like when we say apple pie. Apple modifies the noun pie, so in this case, the word apple is an adjective.

the economic activity signified in that scenario is a. production

in general, market production makes reference to the elaboration of a product or service which is destinated for economic purposes (to be sold) at money-price in a market. such product or service has to be principally tradable for money.

there is no money exchange involved in distribution, generalized reciprocity or balanced reciprocity.