Use the Following Figure to Answer the Question

question 33

Multiple Choice

Use the following figure to answer the question. Based on the species-area plot in the figure, if habitable area on an island were reduced from 10,000 square kilometers (km2) to 1,000 km2, roughly what percentage of the species would disappear?

• A) 0.3 percent
• B) 3 percent
• C) 30 percent
• D) 60 percent

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Definitions:

Multiplier

The ratio of the change in an endogenous variable to the change in an exogenous variable it is dependent on, often used in the context of fiscal policy’s effect on the economy.

MPC

Stands for Marginal Propensity to Consume, indicating the proportion of additional income that is spent on consumption.

Tax Cut

A reduction in the amount of taxes that individuals or companies are required to pay to the government.

Taxes

Required financial obligations or other sorts of charges enforced on a taxpayer by a government agency for the purpose of funding governmental activities and several public spending.