Refer to above figure. If the economy were in the initial position (where OmL1 workers were in manufacturing, what trade policy might gain ABC of economic welfare?

A fiduciary monetary system ultimately rests on

A) the value of the assets backing up the system. B) the public's confidence in the system. C) the difficulty of counterfeiting the currency. D) the value of the metal backing up the system.

If the firms in an industry could take advantage of a reduced wage, how would one best describe the firms' demand for labor? The MRPL

A) schedule would remain unchanged, and the firms would hire more labor at the lower wage. B) schedule would shift to the left and the firms would move down the new schedule. C) schedule would shift to the right and the firms would move down the new schedule. D) none of the above