The Restrictive Strategy Is a High-Risk, High-Return Alternative to the Flexible

question 23

Multiple Choice

The restrictive strategy is a high-risk, high-return alternative to the flexible strategy because of

• A) financial shortage costs.
• B) production shortage costs.
• C) human resources shortage costs.
• D) None of the above.

---

Definitions:

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, and health.

Physical Capital

The tangible assets that a company uses in the production of goods or services, such as machinery, buildings, and vehicles.

Union Labor

Union labor consists of workers who are members of a labor union, which negotiates wages, work conditions, and benefits on their behalf.

Average Wages

The mean income calculated by dividing the total wage pool by the number of wage earners, used as an indicator of economic health and labor market conditions.