Identify a true statement about federalism.
A) The framers of the Constitution chose to create a federal system because a federal government is free from conflicts associated with division of power.
B) The presence of uniform state laws in a federal system enables smooth business transactions across state borders.
C) The actual workings of the federal form of government have depended, to a great extent, on the historical application of the broad principles outlined in the Constitution.
D) The expressly designated powers of governmental authorities can be altered without changing the fundamental nature of federalism.
E) In a federal system, the national government has unlimited powers, whereas the subnational governments' powers are vaguely defined.
Question 2
Which of the following illustrates the concept of fiscal federalism?
A) The national government of Nilkoma buying company shares and investing them in nation-building projects
B) The national government of Paplis borrowing funds from neighboring countries to finance its national policies
C) The national government of Yokojima delegating its states to carry out population control policies and allocating a portion of taxes collected to them
D) The national government of Gegvant creating a pooled-resources fund in order to raise money to carry out its day-to-day government functioning activities
E) The nation of Gargantua withdrawing from the economic union of which it has been a member for more than five decades
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