PRE-EXAM QUESTIONS

PES

Overview of Economics

Worldviews and Economics

Sources of Knowledge

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Overview of Economics
Q 1. Discus the problem of economics from
both secular and Islamic perspectives.

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Definition of Economics
Economics is the social science
that studies the allocation of
scarce resources to satisfy
unlimited wants.

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The Economizing Problem

Scarcity of Resources (Economic resources are limited
relative to wants)
Unlimited Wants (Peoples desires to use goods and
services that provide satisfaction.
Choice (Scarcity of resources requires choices to be
made)

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Scarcity
Scarcity means that people want more than is
available.
Scarcity limits people both as individuals and as a
society.
As individuals, limited income, time and ability,
restrict people from doing or having ALL what they
like.
As a society, limited resources such as manpower,
machinery, and natural resources limit the amount
of goods and services that can be produced.
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Scarcity Requires Choice

People must choose which of their desires they
will satisfy and which they will leave unsatisfied.
When people, either as individuals or as a
society, choose more of something, scarcity
forces them to take less of something else.
Economics is sometimes called the study of
scarcity because economic activity would not
exist if scarcity did not force people to make
choices.
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Choice
People make choices about what goods and
services they wanted.
People work harder and do business to earn
income or make profits in order to satisfy their
unlimited wants.
Commodities, money and profits constitute
their happiness.
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Economics from Islamic Perspective

What is our main objective in this

earth?
How to worship Allah the whole day?

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Definition of Islamic Economics

Islamic Economics is a social science which
studies the economic problems of people
imbued with the values of Islam.
It is the study of social science which
enables people to perform their obligation
to Allah and to their society
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Cont. Definition of Islamic Economics

It studies man not only as an isolated individual but of
a social individual having;
faith,
ethics (believing in the six articles, his deeds is
accountable to Allah as it is guided by Shariah.
he is also required to propagate good doing and
prohibit bad doing al-Amr bil Maruf wa al-Nahy anil Munkar
in the society (watch his business ethics)

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10

Islamic Economic
Akhirah: the hereafter for accountability,
and for getting the outcome of all deeds
including economic activities, in an eternal
life.
Economic and Non-Economic wellbeing for leading a good life and
discharging socio-Islamic obligations in this
world and for achieving the home of
hereafter.
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11

How Islam views the

Economic Problems?
Scarcity of Resources
Unlimited Wants &
Choice

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Resources in Islam
Allah (swt) Has created resources in abundant.
However recourses in the eyes of mans is
scarce/limited due why?
due to lack of means to reach this resources
(which is the results of mans choice such as
lack of knowledge, skills, etc.)

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Unlimited Wants
Islam recognizes that human desires are
unlimited. This is explained in the Quran
and in the Hadith.

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Cont. Mans Unlimited Wants

Thinking that his wealth would make him
last for ever!(104:3)

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15

Man is greedy
( ):



If man is given a valley of gold, certainly, he
wants the second and third one and he will
.. Hadith
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Choice in Islam
Hence scarcity of means necessitates
choice which can provide higher values
but at same time performing ones mission
in this life.
Choice in Islam should be ranking
according to need fulfillment and not to
greediness
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Acquiring Wealth in Islam

Is it prohibited ?

Yes/No

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Cont. Acquiring Wealth in Islam

When a man dies he will be asked on four:
1- His youth how he spend it?
2- His age how he spend it?
3. His wealth how he acquires it? &
4. How he spends it?
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WORLDVIEW AND ECONOMICS

Q 2. How can Islamic economics be
explained within the context of Islamic
worldview.
Q 3*. Discuss the concept of khalifah in the
production, allocation and distribution of
resources from the Islamic perspective.

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WORLDVIEW

Worldview explain how man perceives this world. It

denotes a set of implicit or explicit assumptions

about the origin of the universe and the nature

of human life.

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SECULAR WORLDVIEW

Every community or system is controlled

or influenced by its own worldview. The
different worldviews among communities
or among system lead to dissimilar end
means of human life.
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SECULAR WORLDVIEW
(Mans Way of Life)
- separation between religion and other
aspects of life,
- materialistic,
- individualistic,
- less socio economic justice
- less public relations,
- less concern with the hereafter life
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ISLAMIC WORLDVIEW
(Mans Way of Life)
- belief in a dual worldviews: this world & the
-

hereafter
religion is part of his/her daily life
maslahah of the ummah (public benefit),
accountability,
trustworthiness,

- transparency etc.
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Islamic WORLDVIEW
To understand the Islamic worldview
let us first define the followings:
1. Islam, Iman, Amal, Ihsan.
2. Relationship between Allah, man,
nature, religion.
3. The nature and characteristics of
man; mans role as abd and khalifah
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Man as a Khalifah
(Vicegerent and Slave)

Man is the khalifah of Allah or vicegerent

on earth and the resources at his disposal
are a trust (Amanah).
He must utilize them according to the will
of the Creator and he will be held
accountable for any misuse of these
resources. It thus, follows that these
resources are means to attain falah.
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Adalah

(Justice)

Everyone is a khalifah, unity and brotherhood of

mankind. This brotherhood would remain a
hollow concept devoid of all substance if it is not
accompanied by adalah (justice).

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Nature
Nature is the creation of Allah for man.
All resources in nature are means for man to
attain his falah (happiness) in this world and in
the hereafter.

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Mans aim in life

Mans aim in life is to achieve happiness not

in this world alone but in the hereafter too, i.e.
to achieve falah (success/prosperity).

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The Islamic Worldview

(Ruyat al-Islam li al-wujud )
An Islamic world view or Ruyat al-Islam li
al Wujuod, is the vision of reality and
truth that appears before our minds eye
reveling what existence is all about.
It is defined as a set of implicit and
explicit assumptions about the origin of
the universe as well as the nature and
purpose of man not only in this world but
in the hereafter too.
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Cont. The Islamic Worldview

Hence the Islamic worldview can be
described as a dual worldview, comprising
both this world and the Hereafter.
The Islamic worldview is based on Islam.
All worldviews must include concepts on
Allah/Tawhid, Man/Khilafah, Nature, Mans
aim in life, Adalah
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Cont. The Islamic Worldview

Muslim believe that this world is a
temporary place for them to be
tested in order to determine whether
they will get the reward or
punishment in the Hereafter.

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SOURCE OF KNWOLEDGE

Q 4. Differentiate between secular and Islamic

sources of knowledge in relation to economics.

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IMPORTANCE OF KNOWLEDGE IN
ISLAM

To seek knowledge is a holy duty; it is

obligatory on every Muslim, male and
female.
The first revealed word in the Quran was
"IQRA" READ i.e. it encourages man to
seek knowledge, to be educated.
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SOURCES OF KNOWLEDGE IN
ISLAM
Knowledge can be classified into two
kinds with respect to the sources of
knowledge;
1. Revealed Knowledge and
2. Acquired Knowledge

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WESTERN SOURCE OF
KNOWLEDGE
Western source of based upon acquired
knowledge, i.e. upon cultural tradition reinforced
by strictly philosophical premises based upon
speculations.
There can be no certainty in philosophical
speculations in the sense of religious certainty
based on revealed knowledge understood and
experienced in Islam.

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