Economic Indicators
This indicator measures the total value of all goods and services produced in a country in one year.
GDP (Gross Domestic Product)
Which sector includes farming, fishing, and mining?
In which economic system do customs and traditions decide what is produced and who receives goods?
Traditional Economy
What is the first stage in Rostow’s model (where most people farm and production is for subsistence)?
Stage 1 — Traditional Society.
What term describes goods a country buys from other countries?
Imports
This indicator divides GDP by population to show average economic output per person.
GDP Per Capita
this sector turns raw materials into finished product
Secondary Sector
Which economy type is controlled almost entirely by the government, with central planning and no private ownership?
Command Economy
Which stage is described as “Take-off,” with rapid industrialization and urban growth?
Stage 3 — Take-off
What is it called when a country sells more to other countries than it buys from them?
Trade Surplus
Name the indicator that combines life expectancy, education, and income into a single score between 0 and 1.
HDI (Human Development Index)
Give two examples of jobs in the tertiary sector from the notes.
Service jobs (Teacher, Nurse, Retail Worker, Bus Driver, Banker, Restaurant Worker)
Name the economic system where supply and demand mostly determine prices and businesses compete.
Market Economy
In which stage do countries have diversified economies and advanced technology (often higher living standards)?
Stage 4 — Drive to Maturity (Stage 5 is High Mass Consumption for service-based wealthy societies).
According to supply and demand, what happens to price when demand is high but supply is low?
Increases (UP)
This health indicator counts the number of infants who die before age one per 1,000 live births.
IMR (Infant Mortality Rate)
Explain why a tomato-processing factory would be classified in the secondary sector.
A tomato-processing factory takes raw tomatoes (a primary product) and changes them into a finished good like salsa. That transformation and manufacturing work is the definition of the secondary sector.
List two geographic or cultural examples of traditional economies.
Inuit Communities, Maasai Herders in Kenya, Amish Communities
Explain how a Stage 3 (Take-off) country might change global trade patterns. Give one clear example. (2–3 sentences)
As a country industrializes during Take-off, it produces more manufactured goods and increases exports, shifting global supply chains. For example, China’s rapid industrial growth led to higher exports of manufactured goods like electronics, increasing global trade in those products and raising demand for raw materials.
This economic situation occurs when a country imports more goods and services than it exports.
Trade Deficit
What does TFR stand for?
Total Fertility Rate
A software engineer designing a new app works in which sector? Explain how this sector differs from the tertiary sector in purpose and examples.
Quaternary sector. Unlike the tertiary sector, which provides direct services (like retail or healthcare), the quaternary sector focuses on knowledge-based work—research, technology, and information services—that creates new products or information (for example, software development and scientific research).
Compare the advantages and disadvantages of a command economy for meeting citizens’ basic needs.
Advantages: The government can direct resources to ensure basic goods and services are provided and can prioritize needs like housing or healthcare. Disadvantages: Central control can reduce innovation and efficiency and limit personal freedom to choose jobs or start businesses.
What is stage 5 of Rostow's Development?
High Mass Consumption
In this economic system, private individuals or businesses own the means of production and make most economic decisions based on profit.
Capitalism