PRE-EXAM QUESTIONS PES

“The Global University in Islamic Finance”

PRE-EXAM QUESTIONSPES

Overview of Economics

Worldviews and Economics

Sources of Knowledge


Overview of Economics

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


Definition of Economics

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

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Scarcity of Resources (Economic resources are limited relative to wants)

Unlimited Wants (People’s desires to use goods and services that provide satisfaction.

Choice (Scarcity of resources requires choices to be made)

The Economizing Problem

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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.

Scarcity

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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.

Scarcity Requires Choice

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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.

Choice

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What is our main objective in this earth?

How to worship Allah the whole day?

Economics from Islamic Perspective

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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

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 Shari’ah. 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)

Cont. Definition of Islamic Economics

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Akhirah: the hereafter for accountability, and for getting the outcome of all deeds including economic activities, in an eternal life.

Economic and Non-Economic well-being for leading a good life and discharging socio-Islamic obligations in this world and for achieving the home of hereafter.

Islamic Economic

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How Islam views the Economic Problems?

Scarcity of Resources Unlimited Wants & Choice


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 man’s choice such as lack of knowledge, skills, etc.)


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

Unlimited Wants

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(َد(ُه' َل ْخ,) َأ (ُه' َم(اَل (َّن3 َأ (ْح,َس(ُب' َي

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

Cont. Man’s Unlimited Wants

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( ص ( اَلَلُه رسول :قال

أحب » ذهب من واديا أعطي آدم ابن أن لو ، ثالثا إليه أحب ثانيا أعطي ولو ، ثانيا إليهويتوب ، التراب إال آدم ابن جوف يمأل وال

تاب من على « الله

“If man is given a valley of gold, certainly, he wants the second and third one and he will …..” Hadith

Man is greedy

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Hence scarcity of means necessitates choice which can provide higher values but at same time performing one’s mission in this life.

Choice in Islam should be ranking according to need fulfillment and not to greediness

Choice in Islam

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Acquiring Wealth in IslamIs it prohibited ?

Yes/No


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?

عليه الله صلى الله رسول قال قال الدرداء ابي عنيسأل حتى القيامة يوم عبد قدما يزول لن وسلم

افناه فيما عمره وعن اباله فيما شبابه عن أربع عنأنفقه وفيما اكتسبه اين من ماله وعن

Cont. Acquiring Wealth in Islam


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.


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”.

WORLDVIEW


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.


- separation between religion and other aspects of life,- materialistic, - individualistic, - less socio economic justice - less public relations,

- less concern with the hereafter life

SECULAR WORLDVIEW(Man’s 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.

ISLAMIC WORLDVIEW(Man’s Way of Life)


Islamic WORLDVIEW

To understand the Islamic worldview let us first define the followings:

1. Islam, Iman, A’mal, Ihsan.2. Relationship between Allah, man,

nature, religion.3. The nature and characteristics of

man; man’s role as ‘abd and khalifah


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.


‘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).


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.


Man’s aim in life

Man’s aim in life is to achieve happiness not in this world alone but in the hereafter too, i.e. to achieve falah (success/prosperity).


The Islamic Worldview

(Ru’yat al-Islam li al-wujud ) An Islamic world view or Ru’yat al-Islam li

al Wujuod, is the vision of reality and truth that appears before our mind’s 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”.


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, Man’s aim in life, ‘Adalah


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.

Cont. The Islamic Worldview


Q 4. Differentiate between secular and Islamic sources of knowledge in relation to economics.

SOURCE OF KNWOLEDGE


• To seek knowledge is a holy duty; it is obligatory on every Muslim, male and female.

• The first revealed word in the Qur’an was "IQRA" READ i.e. it encourages man to seek knowledge, to be educated.

IMPORTANCE OF KNOWLEDGE IN ISLAM


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


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.

PRE-EXAM QUESTIONS PES

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