A Government in Which Powers Are Divided Between a Central

question 27

Multiple Choice

A government in which powers are divided between a central government and subdivision governments is called a(n) :

• A) federal system.
• B) unitary system.
• C) confederation system.
• D) devolved system.

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Definitions:

Price/Earnings Ratio

A measure used in finance that compares the current price of a company's stock to its per-share earnings, indicating the market's expectations of the company's future earnings growth.

Inflation Rate

The speed at which the average cost of products and services increases, reducing the buying power.

Risk Averse

A tendency to prefer options that have fewer risks and more certain outcomes.