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Your Dog Milo Has Learned to Salivate at the Sight

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Essay

Your dog Milo has learned to salivate at the sight of a bright blue food dish that says MILO. What phenomenon will be likely to occur if Milo catches sight of your brand-new, blue plastic cereal dish (which doesn't say MILO)? Assuming that you never give Milo food out of your cereal dish, what will eventually happen?


Definitions:

Average Tax Rate

The proportion of total income that an individual or corporation pays in taxes, calculated by dividing the total taxes paid by total income.

Marginal Federal Income Tax

The rate at which the last dollar of a taxpayer's income is taxed by the federal government.

Federal Tax Revenue

Revenue the federal government receives from taxes, including income tax, corporate tax, and other taxes.

Personal Income Tax

A tax levied by the government on individuals’ income, including wages, salaries, and investment returns.

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