Why is federalism important to the US's democracy?
Federalism provides for a separation of powers with formal and informal powers given to each branch of government. It maximizes democracy by allowing representation in different branches and not allowing for one branch to obtain and abuse too much power without being checked by another branch.
Why is maximum utility important in economics?
It provides for an institution to allocate and spend resources according to their preferences. There is no right or wrong way to how it is allocated or spent. Maximum utility maximizes the benefits of what outcomes one wants from how resources are used.
What is a government? How does it differentiate from a "state"?
A government is a group of people who control a state at a given point in time. This is different from a state because a state is the set of institutions that administers and implements policies within a specific territory. A government controls the state.