I am able to create lists in Facebook. Is it possible to apply a set of privacy setting for each list?
Facebook – List-Based Privacy Settings
facebookprivacy
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Best Answer
I'm not sure if that's what you mean with "privacy setting for each list" (the lists are not public so you're the only one that can see them) but you can use the lists in your privacy settings to show/hide things for/from people on these lists.
You can then enter persons or lists in the "Hide this from" textbox as well as the textbox that appears when you select "Specific people" in the "Make this visible to these people" dropbox.