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Answers with my personal explanations:

1.­ This is basically another way of asking "what is the main idea of the passage"? 

A - Wrong, because the ballot initiative is not the main point of the passage, it is simply mentioned as an example of a democracy.
- Wrong, same reason as A
- Wrong, the passage's tone is not negative towards democracies, the tone is rather neutral and "explanatory"
D - Wrong, same reason as C
- Correct, the passage's main goal is to discuss that America is a democratic republic, with SOME democratic systems in place on a smaller scale.

2. The answer to this question is in the sentence before the one in which the New England town meetings are discussed. It says "Vestiges of democracy remain in America", followed up by the New England town meetings example. Therefore, the answer is A

3. This question is a role question, let's look at the answer choices

A - Wrong, the main idea was already introduced in the beginning.
- Wrong, this SEEMS like a good answer, but it's not the best. It's not really concluding anything as much as it is simply bringing up a point already brought up before.
C - Wrong, the highlighted sentence goes AGAINST the examples, which were all about democracies; however, these examples were then COUNTERED by the main idea that DESPITE these examples of democracy, America is still a democratic republic at the end of the day.
- Correct, the passage listed 2 examples of democracies within America before reiterating that despite these local democracies existing, America is still a democratic republic at the end of the day, which is what the main idea of this passage is and was iterated in the first sentence.
- Wrong, it is in agreement with the thesis

4. In the sentence referring the ballot initiative, it says it is "also called the referendum", and talks about how voters are directly responsible for the outcome, which matches the definition of a democracy according to the passage. B is the correct answer

5. To reiterate, ACCORDING TO THE PASSAGE (never make your own assumptions about something), a democratic republic is a system in which the representatives voted in by the people make decisions on the people's behalf.

A - Wrong, this is an example of democracy. It SEEMS right because voters are picking their president, but no one said anything about the president REPRESENTING the voters in any way in this particular school board or making decisions on their behalf (it's a trick answer, never make assumptions!)
B - Wrong, the CEO isn't doing this on anyone's behalf, nor is there any mention that he was elected in by the voters.
C - Correct, because the Board of Officials were voted in by the people and are now picking the next steps on the people's behalf for the insurance company
D - Wrong, this is an example of democracy
E - Wrong, this answer SEEMS right, but is not the best example, because it's not mentioned in the answer choice anywhere that the government was elected in by the people, or that the government even has representatives elected in (it simply says "the government" NOT "the American government", never make assumptions!)­
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