Although the form of government is often referred to as an empire, in fact most areas within the empire were organized as city-states, known as altepetl in Nahuatl. These were small polities ruled by a king (tlatoani) from a legitimate dynasty. The Early Aztec period was a time of growth and competition among altepetl. Even after the empire was formed (1428) and began its program of expansion through conquest, the altepetl remained the dominant form of organization at the local level. The efficient role of the altepetl as a regional political unit was largely responsible for the success of the empire's hegemonic form of control.
Tribute and trade
Aztec feather headdress, often described as the crown of Moctezuma II. Its actual owner is unknown, but the feathers must have been brought from tropical rainforest areas far away from the Aztec capital.
Several pages from the Codex Mendoza list tributary towns along with the goods they supplied, which included not only luxuries such as feathers, adorned suits, and greenstone beads, but more practical goods such as cloth, firewood, and food. Tribute was usually paid twice or four times a year at differing times.
Archaeological excavations in the Aztec-ruled provinces show that incorporation into the empire had both costs and benefits for provincial peoples. On the positive side, the empire promoted commerce and trade, and exotic goods from obsidian to bronze managed to reach the houses of both commoners and nobles. Trade partners included the enemy Tarascan, a source of bronze tools and jewelry. On the negative side, imperial tribute imposed a burden on commoner households, who had to increase their work to pay their share of tribute. Nobles, on the other hand, often made out well under imperial rule because of the indirect nature of imperial organization. The empire had to rely on local kings and nobles and offered them privileges for their help in maintaining order and keeping the tribute flowing.
The Aztec economy can be divided into a political sector, under the control of nobles and kings, and a commercial sector that operated independently of the political sector. The political sector of the economy centered on the control of land and labor by kings and nobles. Nobles owned all land, and commoners got access to farmland and other fields through a variety of arrangements, from rental through sharecropping to serf-like labor and slavery. These payments from commoners to nobles supported both the lavish lifestyles of the high nobility and the finances of city-states. Many luxury goods were produced for consumption by nobles. The producers of featherwork, sculptures, jewelry, and other luxury items were full-time commoner specialists who worked for noble patrons.
In the commercial sector of the economy several types of money were in regular use. Small purchases were made with cacao beans, which had to be imported from lowland areas. In Aztec marketplaces, a small rabbit was worth 30 beans, a turkey egg cost 3