Which of the following accounts for the largest source of revenue for the federal government?

In the above figure, between x = 2 and x = 3, what is the slope of the line?

A) 1 B) -1 C) 2 D) 3

Economist A.C. Pigou argued that to deal with a negative externality in production, the government should impose a tax equal to the cost of the externality. What did Pigou believe should be done in the case of a positive externality in consumption? How

would his recommendation impact the demand and market equilibrium for the product which is generating the positive externality? What will be an ideal response?