This is a Chinese yo-yo made by the company Mac in Lynbrook, New York. As fun as that sounds, it gets better. It's packaged on a "Star World" card. You may remember the Star World logo from the weird vinyl action figure carrying case, though I'm not sure how the two products are related. Did one company rip-off the other? Anyways, below the logo it says "Space Sword", which I'm guessing is their non-copyrighted version of a lightsaber. This is the blue handled version, but there's also a red handled one.
The text on the card behind the toy says:
HOW TO USE YOUR
Remove rubber band and save.
To get most fun and best use out
of your SPACE SWORD grasp
handle and flick your wrist and
SPACE SWORD will extend. To
keep sword extended in play
position slowly rotate wrist to
the left. To return sword to
original position stop rotating.
MAY THE FUN BE WITH YOU:
REPLACE RUBBER BAND
AFTER PLAY TO PRESERVE
CURE OF PAPER.
For anyone who just skipped reading the text, let me repeat the best part: "MAY THE FUN BE WITH YOU"! I haven't opened the toy and I'm having fun already!