ISLAMIC ECONOMICS 3 & 4

How should a Muslim man spend his money?

• He makes savings as gold and other jewels.

• He makes a demonstration for consumption

• He spends all consumption to his needs without limit

• He spends at first for his consumption to satisfy his needs

Which is NOT a principle of consumption based on Monzer Kahf?

• The concept of wealth.

• The concept of success.

• The concept of moderation.

• The time scale of consumer behaviour.

What is the definition of production based on Kahf?

• Produce and manufacture such things which are quite essential for human lives.

• Fulfilment of one’s own needs in moderation, family and future with contribute to cause of Allah.

• Man’s effort to improve material condition and moral to obtain his goal in the hereafter.

• Process that transforms resources into finished goods to fulfil consumer’s needs.

Deferred payment sale is referring the sale of goods on a deferred payment basis at a price, which includes a profit margin agreed to by both parties is also called ________.

• bai bithamin ajil

• mudarabah

• murabahah

• qard hassan

Choose the effects of consumption on production summarized by Siddiqui.

• More resources would be allocated in the quantity of luxury goods demand.

• Increase the supply of labour.

• More resources would be allocated to the primary comforts of life.

• Fewer resources would be allocated for prohibited goods and services.

When the demand for cultural services and leisure increases, it will adversely affect the demand for ___________________.

• luxuries only

• material comfort and luxuries of life

• material comfort only

• social needs only

Another name for benevolent loan is _____________.

• ijarah thumma al bay’

• qard hasan

• mudarabah

• musyarakah

An objective of production in Islam is to ______________.

• attract investor

• make a lot of production

• fulfill necessity moderately

• use production factors maximal

Overconsumption is condemned in Islam and is termed israf which means __________________.

• spending in the wrong way

• spending in the prohibited activities

• spending the lawful matters such as food, clothes and shelter

• overspending on lawful matters such as food, clothes and shelter

Which of the following are NOT the objectives of a Muslim producer?

• Improve the conditions of society through the use of resources

• Maximize level of profits.

• Obtain the blessings of Allah SWT.

• Achieve reasonable amount of profits.