Which One of the Following Items Is Most Apt to Be

question 28

Multiple Choice

Which one of the following items is most apt to be considered material nonpublic information? Assume that none of this information is known publicly.

• A)Barbara knows that Sue, an accounting clerk, is planning on resigning on Friday.
• B)Linda knows a new receptionist has just been hired.
• C)Wendy knows that her firm's net income is continuing to increase at a steady rate.
• D)Tracy knows her employer just received patent approval on a key new product.
• E)Maria is the chief financial officer and knows the firm intends to maintain its current dividend policy.

---

Definitions:

Consumer Surplus

The divergence between anticipated consumer expenditure on a good or service and the actual expenditure.

Surplus II

An excess of production or supply over demand, leading to potential wastage or decrease in prices.

Total Surplus

The total benefits society gains, encompassed by the addition of consumer surplus and producer surplus within a market.

Consumer Surplus

The variation between the sum consumers are willing to allocate for a good or service and the sum they actually allocate.