System in which the national government and state governments are coequal, with each being dominant within its respective sphere.

• A. Federalism
• B. Dual Federalism
• C. Cooperative Federalism
• D. Fiscal Federalism

Answer: (B)

The idea being tested is how sovereignty is divided between national and state governments. When each level is independent and dominant within its own sphere, the arrangement is described as dual federalism. In this model, the national government handles certain national matters (like defense and currency), while states handle local matters (like education and public safety), with clear, separate boundaries between their powers. This separation is often likened to a layer-cake structure, where each layer operates within its own domain without a lot of overlap.

This description matches dual federalism best, because it emphasizes coequal, distinct spheres of authority rather than a lot of overlap or cooperation. Other forms—cooperative federalism, for instance—stress more collaboration and sharing of powers across levels, while fiscal federalism focuses on how funds and grants flow between levels—neither of these best captures the idea of strictly separate, dominant spheres for national and state governments.