What term describes a system of government where power is divided between a central authority and constituent political units?

The correct term for a system of government where power is divided between a central authority and constituent political units is federalism. Federalism is characterized by the distribution of power between national and subnational entities, such as states or provinces. In such a system, both levels of government have the authority to legislate and govern over their respective jurisdictions. This structure allows for a balance of power, enabling different regions to maintain some degree of autonomy while being part of a larger national framework.

In contrast, a confederation signifies a loose alliance of independent states that delegate limited powers to a central authority, which typically has minimal authority compared to the member states. A unitary system concentrates power in a central government, allowing little to no autonomy for subnational units. Monarchy refers to a political system led by a single ruler, such as a king or queen, and does not inherently involve a division of power between central and local authorities. Understanding federalism is crucial as it shapes how governance and policies are implemented across various levels of government, influencing empirical outcomes in diverse political contexts.