CHAPTER 1 : INTRODUCTION

1. WHAT IS ECONOMICS
(CONVENTIONAL VS ISLAMIC)

2. WHAT IS THE DIFFERENCE BETWEEN

MACRO & MICRO

3. MACROECONOMIC OBJECTIVE
(CONVENTIONAL VS ISLAMIC)
 DEFINITION OF ECONOMICS

Study of how society chooses to allocate its

scarce resources to the production of g & s
CONVENTIONAL in order to satisfy unlimited wants – Irvin
B. Tucker

2 problems in economy
i. Productive resources which to produce
g & s are limited
ii. Human wants for g & s are unlimited

Economy has to decide how to use these

resources efficiently in order to attain the
max possible satisfaction for the members
 DEFINITION OF ECONOMICS

Social science which studies the economics

problems of people imbued with islamic values
ISLAMIC
– M A Mannan

Ultimate objective in Islam – to achieve al-Falah

Mean – achieve success in this world & hereafter
i.e guarantee given by Allah

How to achieve al-falah?

- All activities & DM are carried out based on philosophic
foundation of the Islamic economic system ie
i) Hablum min Allah
ii) Hablum minan nas
iii) r/ship man vs nature & surroundings
iv) meaning of his living in this world