Consider an economy with H households who derive utility from consumption of a private good, x, a public good,G, and leisure (T-n), where n is the amount of time they spend working for wage w. Supposethat the government wants to supply the public good and finance its provision with a tax on labour income at ratet. Then, the optimal income tax will raise sufficient revenue to supply the efficient quantity of the public good.

Answer True, False or Uncertain and Explain.