In the ZZZZ Best Case, Barry Minkow Was Sentenced to 5

question 71

Multiple Choice

In the ZZZZ best case, Barry Minkow was sentenced to 5 years for his involvement in

• A) A fraudulent insurance restoration scam
• B) Insider trading on Lennar stock
• C) Stealing from a San Diego church
• D) Overcharging a LA housewife for carpet cleaning services

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Definitions:

Externalities

Costs or benefits arising from an economic activity that affect bystanders and are not reflected in market prices.

Distortionary Taxes

Taxes that cause changes in behavior and decision-making, leading to inefficiencies in the market.

Nonneutral Taxes

Taxes that disproportionately affect one group or type of economic activity over another, often used to influence market outcomes.

Second Best

A situation or solution that is accepted in the absence of a preferred option.