Answer: 
The government in which a 'small group of people' is elected to represent a 'larger group' is called an indirect democracy. 
Step-by-step explanation: 
- An indirect democracy is the one in which it is not possible for all the citizens to participate in the process of lawmaking. 
- Hence, they 'elect representatives' to represent them and make decisions in favor of the citizens that elected them. 
- Indirect democracy is believed to be the most effective form of governance.