ISLAM AND ECONOMICS

Humans are only in need of food, shelter, and clothing.

• True

• False

According to Ibn Khaldun, Islamic economics concerns with

• administration of scarce resources according to ethics.

• money getting and money spending.

• sciences of wealth.

Islam strikes a balance in economics by giving emphasis on absolute individual ownership and rejecting profit-making.

• True

• False

Since man earns his livelihood, he is then entitled to absolute ownership.

• True

• False

The attainment of al-Falah in economics is crucial as it leads to the felicity of this world and the hereafter.

• True

• False

The attainment of al-Falah in production signifies the

• increase in the volume of production based on priorities of needs.

• quality of goods and services produced based on Islamic injunctions.

• minimising numbers of people involved in the production.

The hadith states:

It is better for one to take his rope, cut wood, pile it up and sell it in order to eat and give charity rather than to beg of others whether they give him or not.

The above hadith is related to the principle of _________ that governing the Islamic economics system.

• right to property

• individual liberty

• social justice

• brotherhood

The principle of the right to property indicates that

• a person has the right to inherit and sell a property.

• a person is having the absolute right to do all means to have possession.

• a person is obliged to contribute to public security, including paying taxes.

• a person's right to possession is safeguarded by the state.

The economic inequality within the natural limit signifies that

• differences in humans earnings are based on the differences in their knowledge, abilities, and skills.

• both rich and poor people could develop the spirits of gratefulness and contentment, respectively.

• Zakah and al-'Afw are to be properly implemented to prevent vast differences among people in possession.

• an individual is free to do all means to ensure an absolute possession.

Islam ensures social justice in human consumption through ______________.

• balance in spending

• spending according to the hierarchy of needs

• encouragement of charity upon those of having surplus wealth

• prevention of wealth circulation among few hands only