____ 21. Unconventional monetary policies include massive lending to banks and open-market purchases of assets other than Treasury bills.

____ 22. The Federal Open Market Committee oversees the money supply through the purchase and sale of government securities.

____ 23. Open market operations affect the supply of reserves.

____ 24. Specialization permits larger outputs and offers economies of large-scale production.

____ 25. Trade occurs only when a country has an absolute advantage and not just a comparative advantage over another country.

____ 26. If all countries produce the goods for which they have comparative advantages, all countries benefit with the increased production of goods with no additional resources being used.

____ 27. A country's comparative advantage can be illustrated by the graph of the production possibilities frontier.

____ 28. Cheap labor is the source of comparative advantages.

____ 29. A tariff is a limitation on the amount of a good that can be imported.

____ 30. An export subsidy is a payment by the government to exporters to permit them to charge lower prices.

____ 31. A tariff is a tax on imports imposed by the country that is importing the goods.