A union of independent states where each state retains its sovereignty is?

• A. Confederation
• B. Virginia plan
• C. Madisonian model
• D. Principal-Agent problem

Answer: (A)

A confederation is a union of independent states in which each state retains sovereignty and delegates only limited, specific powers to a central authority. This setup means the central government is relatively weak and relies on the states for funding and enforcement of laws, while the states preserve the ultimate say on most matters. That’s why this term fits best: it captures the idea of a loose alliance where sovereignty stays with the member states rather than being pooled into a powerful national government. The other terms describe different ideas: the Virginia Plan proposed a strong national government with representation based on population; the Madisonian model involves checks and balances within a strong national framework; the principal-agent problem deals with delegation and potential misalignment of incentives, not a form of government. Historically, the Articles of Confederation embodied this loose confederation structure, illustrating how states maintain sovereignty within a united framework.