What is the term for a government system where power is shared between two levels?

The correct term for a government system where power is shared between two levels is "federation." In a federation, the power and authority are divided between a central governing body and various constituent political units, such as states or provinces. This system allows for local self-governance while still maintaining a strong national framework. Federations are characterized by the constitution or laws that outline the distribution of powers, ensuring that both levels of government can operate independently in their respective areas.

In contrast, a confederation typically consists of a union of independent states that retain their sovereignty, forming a loose alliance for certain common purposes. A unitary system, on the other hand, centralizes most powers within a single national government, leaving little to no autonomy for regional authorities. Anarchy refers to a state of society without government or authority, which is fundamentally different from a structured governmental system like a federation. Understanding these distinctions clarifies why federation is the appropriate choice for a system sharing power between levels of government.