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:_________. A. active violation.B. public action.C. private action.D. boundary spanning.E. industrial espionage.

Answer 1

Answer: C. Private Action

Explanation: Private actions are act or actions carried out or perpetrated by individuals, corporations or groups without direct consent or order from the government.

In the scenario above, the breakdown of communism crippled the government and the state was overrun by mafians. At that point, the government could no longer uphold or shield property owners. Therefore, the demands made by the mafian from business owners in other to avoid retribution is called private action in the context of property right.