What is the system of government in which power is divided between a central authority and constituent political units?

The system of government where power is divided between a central authority and constituent political units is known as federalism. This structure allows multiple levels of government to exist, each with its own responsibilities and powers. In a federal system, the central government handles issues that affect the entire country, such as defense and foreign affairs, while the constituent units (like states or provinces) manage local matters, such as education and transportation.

Federalism allows for a balance of power, ensuring that no single entity holds all authority. This division can help accommodate diverse populations with varying needs and interests across different regions. Prominent examples of federal systems include the United States and Germany, where both the national and state governments have the power to legislate on different issues.

In contrast, the other options refer to different governmental structures. A democracy can exist within a federal system or as a unitary system; monarchy refers to a form of government where a single person rules, usually for life and by hereditary right; and socialism is an economic and political system where the means of production are owned and regulated by the community as a whole, which does not specifically address the division of powers between levels of government.