Let x be the GDP of a country, and let y be a measure of its...

Transcribed Image Text:

Let x be the GDP of a country, and let y be a measure of its level of pollution. If the function u(x, y) purports to measure the total well-being of the society, what signs do you expect u(x, y) and u, (x, y) to have? Can you guess what economists usually assume about the sign of uwy(x, y)? Let x be the GDP of a country, and let y be a measure of its level of pollution. If the function u(x, y) purports to measure the total well-being of the society, what signs do you expect u(x, y) and u, (x, y) to have? Can you guess what economists usually assume about the sign of uwy(x, y)?