There are a number of characteristics of government. Some of the common ones include having citizens, having a territory, using a structure of laws and so much more.
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A "state" (nation-state) has Population, Territory, Soverignty, and Government.
State governments have some powers that the federal government does not have.
Some powers are expressly given to the federal government under the constitution - apex.
An oligarchy is a type of government that is actually a group of a few special people or families running a city, state, or country. In this type of government, poorer people are usually treated unfairly.