Federation
Definition
A system of government in which power is divided between a central (federal) government and regional (state or provincial) governments.
Explanation
In a federation, certain powers belong to the national government while others are reserved for state, provincial, or territorial governments. The US, Canada, and Australia are all federations. In the US, 50 states share power with the federal government. In Canada, 10 provinces and 3 territories each have their own governments. In Australia, 6 states and 2 territories operate alongside the federal government. The UK is not a federation but has devolved powers to Scotland, Wales, and Northern Ireland. Federal systems allow for regional diversity within a unified national framework.
Why this matters for your test
US, Canadian, and Australian test takers should understand how federal and state/provincial governments share power.
Source: General civics terminology