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1. Factors that contributed to complete abscence of writings on Islamic economics in period

between 750s and 1050s were:
the decline in the political power of the caliphate
the preoccupation of Muslim thinkers with other areas of intellectual civilities, most of all
2. The major writing in 8th century on the topic of Islamic economics was Kitabu-l-Haraj written by
Abu Yousuf.
3. Three different forces were growing in the time of political fragmentation in Abbasid chalipate:
a. the Alid movement,
b. the Arab separatist movement, and
c. the non-Arab separatist movement
4. Fatimids were the longest-lasting Turkish separatist movement during Abbasid calipahte.
5. The oldest world university Al Azhar was constructed by Fatimids in 972 A.C. in Cairo, Egypt.
6. List three Persian separatist movements: Samanids, Buwayhids, Saffarids.
7. Buwayhids paid considerable attention to learning. Their literary circle includes Ibn Sina and Al
8. Tulunids which are Turkish separatist movement engaged in favourable economic and artistic
activities such as irrigation and public works.
9. The most important Turkish separatist movement were:
a. Seljuqs
b. Tulunids
c. Buwayhids
d. Ghaznewids
10. The final blow to weak Islamic caliphate came from:
a. Byzantine empire
b. Mongols
c. Rome empire
d. None of the above
11. In 1516, caliphate was revived by __________ leader Salim.
a. Abbasid
b. Umayyad
c. Ottoman
d. Fatimid
12. Ulema could not write on Islamic economics for it was preoccupied with:
the consolidation of coherent schools of religious sects and the need to respond to them,
the novelty of the Greek philosophy and the curious desire to explore it and react to it
Islamically, and
the exogenous military aggression of the neighboring forces
13. The major writing on Islamic economics that appeared after four centuries long silence was
Al-Ahkamu al-Sultaniyyah written by Al-Mawardi.

14. Al Ahkam was similar to Kitabu al-Kharaj in four stances:

written at the instructions of the rulers,
meant to provide just rules in matters related to the administration of the states affairs,
provide guidance to those managing the state,
written by chief judges who were close to the rulers
15. Al Asfahani in his Al Zaria fi Makarimi al Shariah was mainly concerned with how state manages
its finances.
16. Al Asfahani divided human needs in two categories:
a. Physiological needs (food, clothing, shelter, marriage) and
b. spiritual needs which are related to satisfying ethical and moral values
17. According to al Ghazali, trading in gold, by selling gold for gold, or in silver, by selling silver for
silver, for the purpose of making profit is prohibited.
18. The first classification of assets similar to the one we have today was done by:
a. Al Ghazali
b. Al Mawardi
c. Jaafer al-Dimashqi
d. Abu Yousuf
19. Hisbah as defined by Ibn Ukhuwwah: Aims at enforcing what is Islamically ordained, maruf, and
preventing what is religiously unlawful, mnkar.
20. Ibn Taymiyya major contribution to Islamic social studies was Al Hisbah fi-l-Islam.
21. The first Islamic scholar to address the issue of financial risk was:
a. Ibn Taymiyya
b. Ibn Khaldun
c. Al Ghazali
d. Al Mawardi
1. The common ideas and issues addresed by Al Asfahani, Al Ghazali and Al Dimashqi include:
a. Division of consumption from basic to extravagant
b. Emphasized importance of economic development and criticized extreme Sufis for
complete abstinence from materialistic world
c. Division of labor and labor theory of value
d. Importance of specialization, trade and economic integration
e. Saw money as a means of exchange and store of value
f. Criticized hoarding money
2. Jafer Al Dimashqi in his book Al Isharah fi Mahasin al Tijarah divided assets into:
a. what is not subject to trade, though it could be important to the business like money
b. what could be subject to trade, such as stock, moveable goods, metal and the products
made from it
c. estate properties (roofed and cultivated)
d. living beings, such as animals and, in accordance with the practice at the time, slaves

3. According to Ibn Taymiyya, when does goverment need to intervene in themarket by fixing
a. The commodity subject to market imperfection is of a particular necessity to the consumers
at large
b. There is manipulation of the market conditions through the sellers refraining from sale in
anticipation of greater profits in future
c. Manipulation of market forces through monopolistic activities when commodity is for
d. The manipulation of the market is for the purpose of achieving a price higher than the fair
value of goods
e. the fixation of prices should be fairly exercised
f. the ultimate objective of price fixation is to remove injustice to the community
4. According to Ibn Khaldun, why is commercial activity on the part of the ruler harmful and ruinous
to the tax system?
a. farmers and merchants will find it difficult to buy livestock and merchandise and to procure
cheaply the things that relate to farming and commerce
b. the ruler can distribute much of the agricultural produce and available merchandise at will
c. the ruler may force the buying merchants to buy from him, and this may be at the highest
d. State competition with public ruins the fiscal structure as most of the revenue from taxes,
and custom duties, come from farmers and merchants
5. According to Ibn Khaldun, how does the labor surplus problem can be solved? Explain.
As the combined labor available in a town or a city produced more than the needs and
necessities of the workers, the surplus labor may be directed towards providing two things:
1. the conditions and customs of luxury in the city, and
2. the satisfaction of the needs of the inhabitants of other cities
6. Which financial risks were mentioned in Muqaddimah?
a. Physical risk, tampering with the merchandise which may ruin it
b. Bad debts, delay of payment which may ruin the profit, since such delay while it lasts
prevents any activity that could bring profit
c. Moral hazard, There will also be non-acknowledgment or denial of obligations, which may
prove destructive of ones capital unless the obligations have been stated in writing and
properly witnessed. The judiciary is of little use in this connection, since the law requires
clear evidence.
d. Loss of profit or capital, All this could cause the merchant a great deal of trouble. He may
make a small profit, but only with great trouble and difficulty, or he may make no profit at
all, or his capital may be lost.