How is a theocracy differ from a monarchy? in a theocracy, people may be governored by secular laws;in a monarchy,people are govenerd by religious laws.. in a theocracy,people elect there leaders;in a monarchy,leaders are appointed for a specify time frame..in a theocracy leaders are appointed for a specific time frame;in a monarchy,people elect their leaders...or in a theocracy,people are given eres by religious laws;in a monarchy,people may be govenered by secular laws