The principle that government can only do what its people give it the authority to do is called
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The principle that government can only do what its people give it the authority to do is called "popular sovereignty," since the people, usually through representatives, are in control of the direction of the state.
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Answer:When Warren Hastings was the governor general,the company gave the right to collect revenue from an area to the highest bidder.But this system was failed as bids were made for an amount much more than what the land could actually produce.So the company never got the full amount.The bidding amount also varied from one year to another,resulting in an instability of income for the company.
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