1. The problem asks which democratic ideal is demonstrated by the national government regulating trade and states issuing driver's licenses. 2. Let's define the options: - Checks and balances: System where different branches of government limit each other's powers. - Popular Sovereignty: Power resides with the people. - Republicanism: Government based on elected representatives. - Federalism: Division of power between national and state governments. 3. Since the national government regulates trade and states issue licenses, this shows a division of powers between levels of government. 4. This division of power is the essence of federalism. **Final answer:** Federalism