A monarchy is a ruling family headed by a king or queen holds political power and may or may not share the power with citizen bodies.

example: the United Kingdom or Saudi Arabia.

market economy

Production of goods and services is determined by the demand from consumers. Also called a demand economy or capitalism.

Direct Monarchy and indirect Monarchy

    A system of government in which one person reigns, usually a king or queen. The authority, or crown, in a monarchy is generally inherited. The ruler, or monarch, is often only the head of state, not the head of government.

    a state or nation in which the supreme power is actually or nominally lodged in a monarch.

    Compare absolute monarchy, limited monarchy.