Which system divides power between the national and state governments?

The correct answer is federalism, as it specifically refers to the system of government that divides powers between a central (national) authority and smaller political units, such as states or provinces. In a federal system, both the national and state governments have the power to create laws, collect taxes, and enforce laws, though the extent and limits of these powers may vary according to the constitution or governing documents of that country.

Federalism allows for a balance of power that can reflect the diverse needs and preferences of different regions while maintaining a strong national government. This is evident in the United States Constitution, which establishes the distribution of authority between federal and state governments, ensuring that both can operate independently in their areas of jurisdiction.