Introduction to Islamic Economics & Economic System

These flashcards cover key concepts and definitions from the lecture on Islamic Economics and Economic Systems.

What does Islamic economics study?

Islamic economics is a social science that studies the economic problems of humanity and evaluates their solutions from the perspective of the Islamic worldview.

What are the implications of halal and haram in Islamic economics?

Halal refers to permissible activities in economic transactions, while haram refers to forbidden activities; all economic activities must be conducted in accordance with Shariah principles.

What is the aim of human life according to Islamic economics?

In Islamic economics, the aim of human life is intertwined with rationality and is often equated with achieving happiness and satisfaction.

Name a core element of the Islamic worldview.

God is a core element of the Islamic worldview, emphasizing His oneness and the necessity for all economic transactions to align with His will.

What does the principle of Rabbāniyyah mean?

Rabbāniyyah (Divine Origin) signifies that Islamic economics has a divine origin, grounded in Islamic values derived from the Holy Qur'an.

How does Islamic economics differ from conventional economics?

Islamic economics incorporates metaphysical and afterlife considerations, whereas conventional economics focuses solely on temporal realities.

What is Wasaṭiyyah in the context of Islamic economics?

Wasaṭiyyah (Moderation) is the principle that emphasizes balance and avoidance of extremism in conduct, ensuring fairness in economic activities.

What is the role of insān in Islamic economics?

Insān (human being) is responsible for managing the economy, balancing both physical and spiritual attributes in decision-making.

What impacts does halal certification have on consumers?

Halal certification builds consumer trust and confidence by ensuring products meet Islamic requirements, thus enhancing demand for halal goods.

How does the Shariah influence financial transactions in Islamic economics?

Islamic financial institutions provide Shariah-compliant services, avoiding interest-based lending and activities considered haram.