How Does Representative Democracy Differ from Direct Democracy

question 35

Multiple Choice

How does representative democracy differ from direct democracy?

• A) In a direct democracy the citizens are taxed directly, whereas in representative democracy taxes are less obvious.
• B) In a direct democracy the individual citizens play an active and direct role in government, whereas in representative democracy they elect officials to act on their behalf.
• C) Unlike direct democracy, representative democracy eliminates the power of the citizens to have any say in government.
• D) The only difference between the two is the way in which representatives are elected.
• E) Direct democracy is synonymous with a monarchy, whereas representative democracy allows more citizen involvement in government.

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Definitions:

Net Cash Inflow

The total amount of cash received minus the total amount of cash spent over a period.

Initial Investment

The initial amount of money spent to purchase an asset or start a project.

Annuities

Financial products that provide a series of payments over time, often used for retirement income.

Internal Rate

Often refers to the internal rate of return (IRR), which is a metric used to evaluate the profitability of potential investments.