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Governments are usually located in cities because government needs a work force and a central location.
A caretaker government rules temporarily, usually at a point of instability, such as after a war.
Political instability as a term usually refers to the likelihood of a government failing. All governments are unstable in some sense of the word.
The local governments usually derive power from the constitution on which they are established. Most orderly societies have a rule of law which the people in the particular society subscribe to.
Terrorists usually intend frightening governments into changing their policies.