Related to the Economics in Practice on page 6: 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.

Question

Quizplus · Accepted Answer

The majority of the $10 retail value of the Barbie doll is captured in the United States, which includes profits, marketing, and licensing fees associated with the doll. This highlights the economic concept of value addition, where the final retail price encompasses more than just the direct costs of materials and labor.

Related to the Economics in Practice on Page 6: According