Federalists: This was one of the first political parties in the United States, led by Alexander Hamilton. They believed in a strong central government, industrialization, and close ties with Britain.
Democratic-Republicans: Led by Thomas Jefferson and James Madison, this party opposed many policies of the Federalists. They favored states' rights over centralized power, an agrarian economy over industrialization, and closer relations with France rather than Britain.
Two-party system: A type of party system where two major political parties dominate politics within a government. One of the two parties typically holds a majority in the legislature; this is referred to as being 'in power', while 'the opposition' refers to the other major party.