After the collapse of communism in Dehran, successful business owners

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

C
Private action refers to theft, piracy, blackmail, and the like by private individuals or groups. Although theft occurs in all countries, a weak legal system allows for a much higher level of criminal action in some than in others.