In a monarchy system the people are ruled by a monarch which is often a king or a queen the Monarch's role is passed down through the same family from generation to generation often going to the oldest child but still stays in the same family.
In most monarchy era the economy is mainly feudal and agriculture was the main production therefore the factor of production (Land) was owned mainly by the monarch and Nobles which constitute a small section of the population.
This created a class structure and the lower class worked on the land owned by the monarch in exchange for protection, food, and shelters.
But in later periods most monarchs adopted economic policies that aimed to accumulate wealth through favorable balance payment and these policies are based on the mercantilism.
Therefore most kingdoms expanded through colonialism and monopolistic trading which further strengthens their financial capabilities and control.
Some countries with traces of monarchy include the United Kingdom, Japan, Spain, Sweden and Saudi Arabia. although there are multiple forms of monarchies for example symbolic monarchy where the Monarch has no political or economic power take the United Kingdom for instance therefore the country is handled by a parliamentary government led by a prime minister on the other hand an absolute monarchy is where the king or queen has the power to make all the
important decisions in a country the disadvantage of a monarchy is that it can lead to unsuitable leaders who came into power simply by being Heirs. this often leads to a lack of ability for the people to decide or make a choice of who they want to rule them and can lead to a potential for abuse of power.