The country being described as a government that most resembles which type of democracy

Here is the full description of the country: 

A small country makes all of its laws through popular vote. When a law is proposed, all citizens have the opportunity to vote to support or oppose it. If a majority of voters support a proposal, it becomes law. Citizens are generally happy that their laws directly reflect their opinions. However, some resent having to spend so much time researching political issues, and others worry that majority groups mightuse the system to pass laws discriminating against minorities.

I believe the answer is: Direct democracy

In direct democracy, the citizens of a country is directly involved in the law making process. Which means they can directly vote for the type of law and legislation that they want. This is different from united states where citizens vote for the representatives that involved in the voting of the legislations