Islamic Economics: Wāqiʿiyyah (Practicality) Principles

Questions and Answers

What does Islamic economics study?

Only economic problems of humanity from a secular perspective

Economic problems of humanity from the perspective of the Islamic world view and values (correct)

Only economic problems of Muslims

Economic problems of individuals

What is the primary focus of Islamic economics?

Wealth maximisation and utility optimisation

Social justice and fairness (correct)

Human reasoning and experience

Economic growth and development

What is the approach of Islam to human issues, including economic ones?

Individualistic

Holistic or multidisciplinary (correct)

Specialised

Segmented

What is the purpose of Islamic economics?

To evaluate economic solutions from the perspective of the Islamic world view and values Signup and view all the answers

What is the scope of Islamic economics?

Covers all humans, including Muslims and non-Muslims Signup and view all the answers

What is the basis of Islamic economics?

Both human reasoning and experience, and Islamic world view and values Signup and view all the answers

What type of scarcity does Islamic economics consider?

Relative scarcity Signup and view all the answers

What is the primary objective of Islamic economics?

To promote social justice and fairness Signup and view all the answers

What is the nature of Islamic economics?

A social science Signup and view all the answers

What is the framework of Islamic economics?

Based on both Islamic world view and values, and human reasoning and experience Signup and view all the answers

Study Notes

Wāqiʿiyyah (Practicality)

Islamic economics combines Sharīʿah rules with practical considerations, such as market research, to understand and explain real-life economic realities.
It emphasizes the importance of efficiency in using and handling resources entrusted to humans by God.

ʿĀlamiyyah (Universality)

Islamic economics is not limited to Muslims, but aims to benefit all humanity and contribute to global economic stability and prosperity.
It studies economic behavior, institutions, and policies of both Muslims and non-Muslims, and critically reviews accumulated human knowledge.

Normative Vs. Positive Economics

Positive economics deals with facts (what is), while normative economics concerns values (what ought to be).
The two are linked, with positive economics informing normative judgments, such as managing inflation.

Islamic Economics Definition

Conventional economics definitions are insufficient for Islamic economics, which incorporates divine guidelines from the Qurʾān and Sunnah.
Islamic economics studies human choices within Sharīʿah boundaries, using sources including divine revelation, empirical data, and rational inquiry.
It covers all humans, including non-Muslims, in their economic behavior, institutions, and policies, even when incompatible with Sharīʿah.
Islamic economics is a holistic, multidisciplinary approach that prioritizes values and world view over wealth maximization and utility optimization.
A comprehensive definition of Islamic economics is: "A social science that studies the economic problems of humanity, and evaluates their solutions from the perspective of the Islamic world view and values, as well as human reasoning and experience."

Description

Explore the importance of practicality and efficiency in Islamic economics, considering the realities of life and the responsible use of resources. Learn how Islamic economics balances divine guidance with reason and facts to understand economic realities.