A Comprehensive Review of Economic Systems, Theories, and Contemporary Global Challenges

Abstract Economics, as a discipline, provides the foundational framework for understanding how societies allocate limited resources among competing needs. It encompasses a vast body of theory and empirical analysis relating to production, distribution, consumption, and wealth management. This review article explores the evolution of economic thought from classical to modern frameworks, critically assesses the main economic systems—capitalism, socialism, and mixed economies—and evaluates pressing global economic issues such as inequality, inflation, unemployment, and globalization. Special focus is placed on how economic theories translate into policy and real-world outcomes. Through a comparative and interdisciplinary lens, this article aims to offer a holistic understanding of economics in the 21st century.