Answer:
By the end of 1948, two separate economies had emerged in the Western and Eastern zones of Germany. In the Western zones, a capitalist economy based on private ownership and free markets emerged, while in the Eastern zones a socialist economy based on state ownership and central planning was adopted. The differences between the two economies included:
In the Western zones, wages and prices were determined by market forces, while in the Eastern zones, wages and prices were centrally planned by the government.
In the Western zones, private businesses and corporations were allowed to operate, while in the Eastern zones, all production was controlled by the state.
In the Western zones, trade was largely unrestricted, and the Deutsche Mark was adopted as the official currency, while in the Eastern zones, trade was heavily regulated, and the East German Mark was adopted as the official currency.
In the Western zones, citizens had the right to travel freely, while in the Eastern zones, travel was heavily restricted.
In the Western zones, citizens had the right to participate in political activities and vote in general elections, while in the Eastern zones, citizens had few political rights.