Which of the following cost functions exhibits economies of scope when three (3) units of good one and two (2) units of good two are produced?

A currency union would be beneficial to nations with symmetrical demand shocks so that a coordinated monetary policy is possible. Comparing the Eurozone with the United States, the finding is:

A) the Eurozone nations and the U.S. states are markedly different in the correlation between growth rates of GDP. B) the Eurozone nations and the U.S. states are quite similar in terms of correlation between growth rates of GDP. C) the Eurozone nations have higher growth rates of GDP in their member states, whereas the United States exhibits lower growth rates. D) the Eurozone is much more diverse in terms of its growth in GDP.

The function of economic institutions is to:

a. determine the profit margin of producers. b. determine how much an economy benefits from trade. c. define the environment in which we can trade. d. define the terms of trade between nations.