Question

After the collapse of communism in Dehran, successful business owners often had to pay "protection money" to the mafia or face violent retribution. In the context of property rights, the behavior of the mafia is an example of_________.

Answer 1

Answer:

private action.

Explanation:

In business, private action refers to activities that is not subjected to direct monitoring/control from the government. In most cases, private action has a huge chance of violating the law.

The example above depicted private action perfectly.

Mafia often work behind the curtain and make a lot of threats to the people if they do not comfort to their way. They often utilized illegal method to achieve their goals (such as violence or threats_) and often able to work under the legal authority's radar.