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An absolutist king has the power to decide anything for anyone on his kingdom, but that does not mean he takes away the power of the people to decide their own things, he can overrule their decisions if he finds it necessary for his own defense and the defense of the kingdom.
For the most part, the people are the ones making all decisions, its the smallest form of government.

Governments can be big or powerful, a king is the smallest most powerful, a totalitarian regime is the largest and most powerful, a bureaucracy is the largest and not very powerful, so on.