Assume we want to compare minimum wage workers in two different industries: fast food and agriculture. If the fast-food industry has 60% of their costs from labor while the agriculture industry has 80% of their costs from labor, then an increase in the minimum wage will lead to layoffs in the fast-food industry compared to the agriculture industry.

China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. the move is hitting hard at the japanese, who consume 25 billion set of wooden chopsticks annually. almost all of the chopsticks used in japan come from china. the reuirements for chinese manufacturers of wooden chopsticks to pay the 5 percent tax is a factor in their external environment.