Which term defines a system where power is divided between a central authority and political units?

Federalism is the correct term for a system where power is shared between a central authority and various political units, such as states or provinces. This structure allows different levels of government to exercise authority over specific areas of policy and governance, promoting a balance of power that can cater to both local and national interests.

In a federal system, the constitution often delineates the powers and responsibilities of each level of government, ensuring that neither the central authority nor the individual political units become too powerful. This allows for regional diversity while maintaining a unified national framework.

The other options illustrate different forms of governance that do not feature this division of power. Monarchy typically centralizes authority in a single individual or ruling family rather than distributing power. Confederalism involves a union of independent states that cooperate for certain purposes but retains a greater degree of sovereignty and autonomy for each member than in a federal system. A unitary state centralizes political power within a single national government, with little or no power granted to subnational entities. Hence, federalism is distinctly characterized by its division of power, making it a foundational concept in many democracies.