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A monarchy is a type of government ruled by a hereditary ruler, such as a king or queen. A theocracy, on the other hand, is a system where a small group of religious leaders rule in the name of a god. A monarch who claims the divine right of kings uses their religion to justify their position of power. (See image: Courtesy of tvtropes.org) A monarch can claim to rule by god's will, but doesn't have to be a religious leader.
