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How does Federalism ensure limitations in policy-making?

  1. By allowing only federal agencies to create laws

  2. By dividing powers across different levels of government

  3. Through mandatory referendums on all laws

  4. By centralizing decision-making authority

The correct answer is: By dividing powers across different levels of government

Federalism plays a crucial role in limiting policy-making by dividing powers and responsibilities across various levels of government, such as national, state, and local entities. This system of governance ensures that no single entity holds all the power, creating a balance that prevents the concentration of authority. When authority is distributed in this manner, different levels of government can enact and enforce their own laws, which can address local needs and preferences more effectively. This division also introduces multiple checkpoints and balances in the law-making process, making it more difficult for any particular group to push through policies without broader consensus. Additionally, because state and local governments can formulate their own policies, there is an inherent competition between jurisdictions that fosters innovation and allows for a range of approaches to be tested. This variation emphasizes community input and reflection, which inherently constrains the extent and uniformity of federal policy-making. In contrast, the other options suggest a centralized or overly streamlined approach to governance that would not allow for the nuanced and representative decision-making that federalism facilitates.