Churchill meant that the Soviet Union had separated the eastern European countries from the west so that no one knew what was going on behind the “curtain.” He used the word “iron” to signify that it was impenetrable.
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The role of a limited government is a main one. It means that the market makes most decisions instead of the government. Some other characteristics are private property, freedom of choices in the market, competition- this rivalry between producers keeps prices low and concurrently, supply and demand.