The system of distributing political power between a central national government and the governments of the geographical regions of the nation is called ?
Correct answer: B. federalism
- A. confederacy
- B. federalism
- C. centralism
- D. Unitarianism
Explanation
Federalism divides constitutional authority between a national government and regional governments such as states or provinces. A confederacy gives greater dominance to the regions, while centralism concentrates authority nationally.
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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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