Understanding Economics Definitions

Conventional Economics

• Economics is considered the science of wealth, as defined by Adam Smith.
• Alfred Marshall defined economics as the study of mankind in the ordinary business of life, highlighting its focus on everyday human activities.
• Modern economists define economics as the study of human behavior concerning money getting and money spending, emphasizing the role of financial transactions.

Islamic Economics

• According to M.A. Mannan, Islamic economics is a social science that studies economic problems in the context of Islamic values.
• Ibn Khaldun and Al-Tusi define Islamic economics as the administration of scarce resources in human society, guided by an ethical conception of welfare in Islam.
• This includes the material and immaterial welfare of individuals, subject to Islamic prohibitions on production, consumption, and distribution.
• In general, Islamic economics involves the study of human behavior in using resources to satisfy wants, with a focus on responsible management of earthly resources in terms of consumption, production, and distribution.
• The core of Islamic economics is the knowledge and application of Shari'ah injunctions and rules to prevent injustice in acquiring and disposing of material resources, enabling individuals to fulfill their obligations to Allah and society.