Government policies, like minimum wage, will tend to throw off production preferences based upon comparative advantage.

Question

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When the government sets a minimum wage, it can cause a disruption in comparative advantage as it may no longer be profitable to produce certain goods or services in the country. This can lead to a shift in production towards industries that are not necessarily the most efficient or competitive, which can ultimately hurt the economy.

Government Policies, Like Minimum Wage, Will Tend to Throw Off