Moderate

In a confederacy________________?

Correct answer: D. all political power ultimately belongs to the states

  • A. powers not claimed by individual states are reserved by the national government
  • B. there is no national government whatsoever
  • C. power is centralized in a national government
  • D. all political power ultimately belongs to the states

Explanation

A confederacy is a loose union in which the member states retain ultimate political sovereignty, while the common government has limited, delegated powers. Thus, political power ultimately belongs to the states.

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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.

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