The federal system is contrasted with a (n)_______________?
Correct answer: D. BOTH unitary and confederate systems
- A. unitary system
- B. confederate system
- C. catholic system
- D. BOTH unitary and confederate systems
Explanation
A federal system divides authority between a national government and constituent states, so it is distinct from both a unitary system, where power is concentrated centrally, and a confederacy, where states dominate.
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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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