What does the term "oligarchy" refer to?

The term "oligarchy" refers to a form of government in which power is concentrated in the hands of a small group of individuals. This small group may be distinguished by their wealth, family ties, corporate interests, or control of specific social or political institutions. Oligarchies can form in various contexts, often circumventing the democratic process or operating within nominally democratic systems but ultimately making decisions on behalf of the wider population while benefitting their own interests.

In contrast, the first choice, while it alludes to wealth, does not capture the broader concept of oligarchy, which is not solely based on financial power. The third choice suggests a system where all citizens have equal power, which aligns more with egalitarian democracies rather than oligarchic systems. The fourth option hints at a type of democracy, but oligarchies can exist alongside democratic frameworks, distorting the principle of broad participation and equal power among citizens. Thus, the essence of oligarchy is best captured by the idea of a small, exclusive group exercising control over larger societal structures.