A limited government is a constitutional government with limited power and checks and balances in place whereas an unlimited government is an authoritarian and totalitarian government. The United States is an example of a limited government.
A limited government works to ensure that the leaders of the government are unable to abuse or misuse powers. It forces the people who have authority and law-making abilities to obey laws. It creates control of the people who are in power to protect the rights of the individuals and citizens.
An unlimited government gives sole power to one person or to a small group of people. The people who live under this unlimited government system have no way of restraining the power of the rulers. The rulers are free to do as they wish without any checks or balances. This is a non-constitutional government without any control over the ruler's power. Many totalitarian governments regulate the lives of each individual in the country. This does not give people the opportunity to make their own choices or to offer up their own ideas about their society.
There are many freedoms that are lost to people who live in unlimited government nations including the freedom to enter into contracts, the freedom to choose one's own employment, freedom to own and sell property, freedom of press and freedom of religion.