In 1948, the Soviets Imposed the Berlin Blockade as Retaliation

question 2

Multiple Choice

In 1948, the Soviets imposed the Berlin Blockade as retaliation against the:

• A) creation of the Deutsche mark as currency for West Germany.
• B) creation of "Bizonia," which would have merged the American and British occupation zones in Germany.
• C) naming of delegates for a constituent assembly in the western zones.
• D) rejection of a reconstruction loan to the U.S.S.R.

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Definitions:

Price Ceiling

A legally established maximum price that can be charged for a good or service, preventing prices from reaching equilibrium levels.

Surplus

A situation where the quantity of a product supplied exceeds the quantity demanded, often resulting in a decrease in prices.

Shortage

A shortage occurs when the demand for a product exceeds the supply of that product at a specific price.

Price Floor

A government-imposed minimum price charged for a commodity, aimed at preventing prices from falling too low.