What term refers to powers retained by states that are not expressly given to the federal government?

Prepare for the SACE Stage 2 Economics exam with a comprehensive quiz. Study through flashcards and multiple-choice questions, each featuring hints and explanations for thorough understanding. Get ready for your exam!

The term that refers to powers retained by states that are not expressly given to the federal government is known as residual powers. These powers are essentially those that were not specifically listed or delegated to the federal government by the constitution. Instead, they remain under the jurisdiction of the individual states, allowing them to legislate and govern in areas that are not preempted by federal law.

Residual powers are crucial in maintaining a balance between state and federal authority, especially in a federal system of governance. This enables states to address local issues and needs that are not covered by national legislation. States exercise residual powers in various ways, such as in areas like education, transportation, and health care, which can differ significantly from one state to another.

In contrast, exclusive powers are specifically granted to the federal government, meaning only the federal government can exercise those powers. Concurrent powers are shared by both the federal and state governments, allowing both to legislate and govern in certain areas. The public sector refers to the part of the economy that is controlled by the government and is not directly related to the delegation of powers in a federal system.

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