Question

1. according to the text, how does international trade affect real wage levels in an economy? it significantly increases real wages in all sectors it decreases real wages due to foreign competition it has no effect on real wage levels it only affects wages in export - oriented industries

Explanation:

International trade does not uniformly increase real - wages in all sectors. It can lead to changes in relative wages. Foreign competition can put downward pressure on wages in some sectors, but it also creates opportunities in others. Overall, it does not have no effect, and it affects more than just export - oriented industries.

Answer:

None of the provided options are entirely correct as the impact of international trade on real wage levels is complex and context - dependent. However, if we must choose the most reasonable incorrect option based on common misperceptions, the idea that it decreases real wages due to foreign competition is a commonly - held view in some quarters. So, if forced to choose, it would be "It decreases real wages due to foreign competition".