Related to the Economics in Practice on Page 5: According

question 193

Multiple Choice

Related to the Economics in Practice on page 5: According to the Economics in Practice, a majority of the $10 retail value of the Barbie doll

• A) is needed to pay for the cost of the Taiwanese plastic used to make the dolls.
• B) pays for the Chinese labor used to assemble the doll.
• C) is captured in the United States.
• D) goes to the Japanese manufacturer of the hair which is used for the dolls.

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Definitions:

Deflation

A reduction in the overall price of products and services, frequently linked with a rise in the value of currency.

Recession Of 2001

A period of temporary economic decline during which trade and industrial activity were reduced, marked particularly by the bursting of the dot-com bubble.

Endogenous Factors

Internal factors that originate within an economic system or model and determine its behavior and state.

Exogenous Factors

External influences that can cause changes in an economic system, outside of the system’s control.