Microeconomic Principles

Running head: Microeconomic Principles
Microeconomic Principles
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Microeconomic Principles1
Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................2
Answer 3..........................................................................................................................................3
Answer 4..........................................................................................................................................4
Answer 5..........................................................................................................................................5
Answer 6..........................................................................................................................................6
Answer 7..........................................................................................................................................7
Answer 8..........................................................................................................................................8
References......................................................................................................................................10

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Answer 1
Economic incentives include different types of policies that encourages people to get
motivation to perform better such that over productivity if individual increase and thereby
income increases as well. In most of the cases, in an economy government provides various kind
of incentives in the form of tax exemption, subsidy and loan support to motivate individuals in
order to increase the productivity of the economy (Rode, Gómez-Baggethun and Krause 2015).
Similarly, in the case Bargadars in West Bengal in India the new law enabled them to keep up to
75% of the produced crop, which was not possible under the previous system and the Bargadars
had to pay a large amount of crop to the land owner (Ganguly 2015). Thus, due to this the
Bargadars were able to earn more by selling the 75% share of the production. Hence, this created
incentive for them to produce more (Datta and Sen 2018). Apart from that, the prohibited the
landowners from removing the Bargadars if they had achieved their quota of 25% of crop as
payment. Thus, these laws worked as motivation for the Bargadars to increase their production.
As a result the regional productivity increased by 28% that made the Operation Barga successful.
Answer 2
Consequentialism is an ethical concept that states the any work or action that result in
some good outcome is ethically right and acceptable (Burgess 2019). For example if human
resource department of a company pays an employee salary in advance due to monetary
requirement for medical reasons violating the salary policies of the company which is unethical
according to deontology concept of ethics, however, the action leads to welfare of the employee.
Thus, the outcome is positive and it satisfies the concept of consequentialism. Moreover, to find
the justification of implementation of Operation Barga from consequentialist perspective the
evaluation of the policy needs to be done. It is necessary to critically look at the outcome of the

Microeconomic Principles3
policy and discuss its relevance with the consequentialism ethical framework. The Operation
Barga was introduced with the objective of improving the condition of the Bargadars and
mitigate their instances of exploitation by the land owners. The policy disallowed the landowners
from removing the Bargadars from lands until the payment of 25% of the produce was being
made. Thus, the policy interfered and restricted land owners from exercising its right one the
land. It causes the violation of deontology (Ananth 2016). On the other hand, the implementation
of the policy resulted in positive outcome because it benefitted the Bargadars by increasing their
portion of crop share that resulted in increased income and also protected them from eviction by
the landowners. Hence, whatever be the cost of the policy it led to positive and desirable
outcome. Thus, the policy satisfies the ethical concept of consequentialism. Hence, under
consequential ethical frame work the introduction of the Operation Barga is justified.
Answer 3
Deontological ethical framework is a kind of normative ethical framework. It states that
every action should be taken based on the certain rules or regulations that means outcome of the
action is irrelevant as long as the action taken is right as per the rules. It is suggest that individual
is morally correct he or she follows the rules and regulations (Holyoak and Powell 2016). For
example, if under rule it is stated that a thief must be punished with death sentence irrespective
of the reasons of action that compelled the person to steal, then under deontology the most
suitable moral action would be death sentence for the thief. The outcome that is death of a person
does not matter in this case. Hence, in the case of the Operation Barga the steps that were taken
by the then government of West Bengal were not ethical under the ethical frame work of
deontology. The laws enacted under the Operation Barga reduced the right of the landowners and
they was not able to take free decisions regarding removal of Bargadars. Additionally, the