Democracy refers to two forms of government: The most common form in which the people have the authority to choose their governing legislators and the original form in which the people have the authority to decide on legislation. Key Points Representative democracy, also known as indirect democracy or representative government, is a type of democracy founded on the principle of elected persons representing a group of people. In the countries we call democracy, all the people do not rule. A majority is allowed to take decisions on behalf of all the people. Even the majority does not rule directly. Therefore, representatives are elected by the people. The majority of people rule through their elected representatives. That is why rule by the people usually means rule by people’s representatives. In a representative democracy, people participate indirectly by electing their representatives who make decisions for the entire country. Citizens are involved only indirectly, through their elected representatives. In a democracy, the governments can be changed by conducting regular elections. The elections are considered essential in any representative democracy. In an election the voters make many choices: They can choose who will make laws for them. They can choose who will form the government and take major decisions. They can choose the party whose policies will guide the government and law-making. Hence, the correct answer is Both A and B are true.