To avoid one person gaining all power - NO absolutism!
B the states were declared more powerful than the goverment
The economy you described in your question is called a market economy. It has free markets and the production of goods and services are determined by the consumers.
All of them are Principles of Government.
<em>Individual rights</em> are unalienable rights that are guaranteed to all citizens.
<em>Popular sovereignty</em> means that the authority of the government comes from the people that elect their representatives.
<em>Separation of Powers</em> is a separation of responsibility and limitations that are given to each branch. The system of <em>check and balances</em> is also a part of this, giving each branch a way to limit other branch and control it.
<em>Federalism</em> is a system of government that divides the power into national and state governments.