Question

In 100 words Compare and contrast two events motivated by incentives, one where the self-interested behavior was good for society and the other where it was bad.

Answer 1

Answer:

Comparing and contrasting of two events motivated by incentives:

1.self-interested behavior was good for society:

Firms offer various incentives to motivates the worker to perform better.

Incentives that motivates the creativity and innovation leads to the benefits to firms.

It also promotes the social welfare as whole.

example :

If the local body or botanical garden gives incentives to employees upon no. of plants implanted by them either in the garden, park or societal places, employees will take much more interest in plantation to earn incentives. This act of plantation will help the society by giving them a good reason for better environment, less pollution, better oxygen, etc.

2.other where it was bad:

On other side, incentives that leads to overall benefits of worker by harming other firms is bad for the society as whole.

Many firms resort to the practices where the employees are motivated to even use the unethical practices to monopolize the overall benefits of firm at the cost of other firms.

This system leads to dwindling of the welfare of society as whole.

example :

While on the other hand if a brick making organization gives incentives to its employees for more production of bricks.

the employees will increase the production for the sake of incentives.

this in turn will use more coal and soil and use of coal.

as everybody known increases pollution as a result producing bad effects for the society.