What does the term 'popular sovereignty' directly refer to?

The term 'popular sovereignty' specifically refers to the principle that the authority of a government is created and sustained by the consent of its people, typically expressed through their elected representatives. This concept was a foundational idea in the development of democratic governance, asserting that the legitimacy of government stems from the will of the people.

In the context of American history, popular sovereignty played a significant role during discussions about slavery and the territorial expansion, as it allowed residents of territories to decide for themselves whether to permit slavery or not. This was a crucial aspect of the debates leading up to the Civil War, illustrating how the power and rights of individuals to make governmental decisions is fundamental to a functioning democracy.

Other options mention states' rights, economic factors, and the structuring of government power divisions, but they do not capture the essence of popular sovereignty, which is centered explicitly on the democratic principle of people’s authority over governance.