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The supporters of the voucher system have issued a statement to the press claiming thi at the experiment justifies their position, since the households who received cash spent $30 less per month on food and clothing than the households receiving vouchers and of bviously squandered the rest of their Social Security payments on non-essentials. However, the government is still not entirely convinced about the merits of the voucher system. The government has asked its Chief Economic Adviser to analyze the results of the exp eriment and comment on the statement issued by the supporters of the voucher syste m. In particular he has been asked to answer the following questions (which you also st hould consider): a) Under what conditions would it make no difference whether a family was giv en cash or vouchers? (8 marks) b) What evidence is there to suggest that, had the families who received vouche rs been given cash, they would have bought a different bundle of the goods a nd services? (8 marks) c) If giving vouchers affected how people spent their incomes, is it possible to c onclude that they would be better off under one scheme rather than another?​

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