Microeconomic Principles Assignment 2022

Running head: Microeconomic Principles
Microeconomic Principles
Name of the Student
Name of the University
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Microeconomic Principles1
Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................2
Answer 3..........................................................................................................................................3
Answer 4..........................................................................................................................................4
Answer 5..........................................................................................................................................4
Answer 6..........................................................................................................................................6
Answer 7..........................................................................................................................................7
Answer 8..........................................................................................................................................8
Reference.......................................................................................................................................10

Microeconomic Principles2
Answer 1
Government of a country uses various kind of policies to incentivize people, workers and
entrepreneurs to improve the economic condition of the country. The policies used are known as
economic incentives. Under economic incentive policies government uses tax exemption,
investment subsidy, laws promoting business activities and many more (Rode, Gómez-
Baggethun and Krause 2015). In the case of Operation Barga the government incentivises e share
cropper and increased their income probability. Previously, the share cropper had to pay major
part of their produce to the landowner and thus it is less motivating for them to produce more.
Under the law of Operation Barga sharecroppers had to pay maximum of 25% of their produce to
the landowners as rent (Kurosaki, Parinduri and Paul 2016). Additionally, the share croppers are
protected against any removal measure from the landowners end. Therefore, with increased share
amount the income of sharecroppers increased and thus it encouraged them to produce more.
Therefore, the policy successfully increased the agricultural output by 28%.
Answer 2
Operation Barga was a policy that improved the condition of the sharecroppers by
removing their possibility of exploitation in the hands of the landowners and increased the
overall welfare and income of the sharecroppers (Bertella and Cavicchi 2017). The policy
violated the right of landowner and made the rule that the sharecroppers would have to pay not
more than 25% of their produce and the landowners had to accept that and cannot remove any
sharecropper from land if he/ she is fulfilling the condition of rent payment. Operation Barga
thus comes under the consequentialist ethical framework because of its approach that violates the
right of the landowners (Burgess 2019). Under consequentialist ethical framework an action is
considered as ethical if the result of the action is moral and good. It means that if the government

Microeconomic Principles3
imposes higher tax on the rich people to generate more revenue and use that revenue to provide
education and health facilities to the poor then the action of taxing the rich more is ethical under
consequentialist ethics as the result of the action is good (Palmer 2017) . Similarly in the case of
Operation Barga it can be seen that the government has uplifted the poor sharecroppers from
their previous vulnerable condition where they were exploited severely by the landowners. Thus,
after the implementation of the policy of Operation Barga, the sharecroppers made more money
and felt more secured in the business of agricultural cultivation(Taylor 2016). Due to this reason
the sharecroppers worked more and produced more crop and it resulted in more significant rise
in production in the agricultural sector of the country. Therefore, it is evident that the Operation
Barga might have violated the right of landowners and reduced their amount of share crop but it
has successfully increased equality in the society and thereby improved social welfare of eh
country (Vallor,, Green and Raicu 2018). Hence, under the consequentialist ethical frame work
implementation of Barga is ethically justified.
Answer 3
Agricultural cultivation is done by two types of farmers, one is known as independent
farmer and the other is sharecropper or popularly known as bargadar. Independent farmers are
those who cultivate in their own lands whereas the sharecropper cultivates in other’s land. Thus,
in case of sharecropper, they just rent the land from the landowner and agrees to pay rent in the
form of share of crop. However, it is the right of the landowner to decide or propose the share of
crop as rent and if the sharecropper agrees then he/ she can start to work or else not or further
negotiation can occur. However, no one can be forced to agree on the others’ terms. The
implementation of Operation Barga by imposition of new rules forced the landowners to agree
on the rent payment of 25% of the produced share. Thus, policy not only forced the landowners