The kind of representation that takes place when constituents have the power to hire and fire their representatives is called:

Agency representation.

Explanation:

The theory of Agency representation refers to choosing of representatives by people according to their wishes, who would work out in Congress according to their wishes. And if they become unable to fulfill their wishes in Congress, then people have the power to 'fire' them by electing other representative in next election. This theory is also interchangeably called the 'instructed-delegate representation'.

So, it is according to the theory of agency representation, people have the power to 'hire' or 'fire' their agents in Congress.

Therefore, the correct answer is agency representation.

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