Suppose a New Government Policy Will Generate $5,000 of Benefits

question 32

Multiple Choice

Suppose a new government policy will generate $5,000 of benefits for local businesses and $3,000 of costs. This policy can best be described as

• A) Pareto efficient.
• B) inefficient.
• C) potentially efficient.
• D) equitable.

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Definitions:

Defalcation

Misappropriation of funds or embezzlement, typically by a person trusted with the management of those funds.

Ponzi Scheme

A deceptive investment scheme that offers high returns with minimal risk to investors, but instead of earning from genuine business operations, it pays profits to earlier investors using the funds from new participants.

Defalcation

The misappropriation of funds or property entrusted to one's care, often involving fraud or embezzlement.

Fiduciary Capacity

A status entailing a legal duty of one party to act in the best interest of another, typically in contexts involving trust, such as financial management or guardianship.