American Federalism (Summary & Vocab &
Review Questions)
3.1 The Division of Powers Answer: Federalism is a system of government that creates two relatively
autonomous levels of government, each possessing authority granted to them by the national
constitution. Federal systems like the one in the United States are different from unitary systems, which
concentrate authority in the national government, and from confederations, which concentrate
authority in subnational governments. The U.S. Constitution allocates powers to the states and federal
government, structures the relationship between these two levels of government, and guides state-to-
state relationships. Federal, state, and local governments rely on different sources of revenue to enable
them to fulfill their public responsibilities.
3.2 The Evolution of American Federalism Answer: Federalism in the United States has gone
through several phases of evolution during which the relationship between the federal and state
governments has varied. In the era of dual federalism, both levels of government stayed within their
own jurisdictional spheres. During the era of cooperative federalism, the federal government became
active in policy areas previously handled by the states. The 1970s ushered in an era of new federalism
and attempts to decentralize policy management
3.3 Intergovernmental Relationships Answer: To accomplish its policy priorities, the federal
government often needs to elicit the cooperation of states and local governments, using various
strategies. Block and categorical grants provide money to lower government levels to subsidize the cost
of implementing policy programs fashioned in part by the federal government. This strategy gives state
and local authorities some degree of flexibility and discretion as they coordinate with the federal
government. On the other hand, mandate compels state and local governments to abide by federal laws
and regulations or face penalties.
3.4 Competitive Federalism Today Answer: Some policy areas have been redefined as a result of
changes in the roles that states and the federal government play in them. The constitutional disputes
these changes often trigger have had to be sorted out by the Supreme Court. Contemporary federalism
has also witnessed interest groups engaging in venue shopping. Aware of the multiple access points to
our political system, such groups seek to access the level of government they deem will be most
receptive to their policy views.
, 3.5 Advantages and Disadvantages of Federalism Answer: The benefits of federalism are that it can
encourage political participation, give states an incentive to engage in policy innovation, and
accommodate diverse viewpoints across the country. The disadvantages are that it can set off a race to
the bottom among states, cause cross-state economic and social disparities, and obstruct federal efforts
to address national problems.
Which statement about federal and unitary systems is most accurate?
a. In a federal system, power is concentrated in the states; in a unitary system, it is concentrated in the
national government.
b. In a federal system, the constitution allocates powers between states and federal government; in a
unitary system, powers are lodged in the national government.
c. Today there are more countries with federal systems than with unitary systems.
d. The United States and Japan have federal systems, while Great Britain and Canada have unitary
systems. Answer: b. In a federal system, the constitution allocates powers between states and
federal government; in a unitary system, powers are lodged in the national government.
Which statement is most accurate about the sources of revenue for local and state governments?
a. Taxes generate well over one-half the total revenue of local and state governments.
b. Property taxes generate the most tax revenue for both local and state governments.
c. Between 30 and 40 percent of the revenue for local and state governments comes from grant money.
d. Local and state governments generate an equal amount of revenue from issuing licenses and
certificates. Answer: c. Between 30 and 40 percent of the revenue for local and state governments
comes from grant money.
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