 ECONOMIC SYSTEM

An economic system is a system of production, resource

allocation, and distribution of goods and services within
a society or a given geographic area. It includes the
combination of the various institutions, agencies, decision-
making processes, and patterns of consumption that
comprise the economic structure of a given community. All
economic systems have four basic questions to ask: what to
produce, how to produce and in what quantities,
and who receives the output of production.
IMPORTANT FACTORS
OF ECONOMIC
SYSTEM

 LAND

 LABOUR

 CAPITAL
A command economy is where economic decisions are
planned out in detail by a central government authority.
Also known as planned economic.
Example: Russia

Principles of Communism
 Nationalization of property
 Economic equality
 Regimentation
An economic system based on a free market, open
competition, profit motive and private ownership of the
means of production.
Capitalism encourages private investment and business,
compared to a government-controlled economy. Investors in
these private companies also own the firms and are known
as capitalists.
Example : USA

Principles of Capitalism
 Belief in economic freedom
 Private property
 Individual decisions
Islamic economics (Arabic:‫إلسالمي‬..‫القتصاد ا‬..‫ )ا‬is a term
used to refer to Islamic commercial jurisprudence or
Fiqh Al-Mu'āmalāt (Arabic:‫امالت‬.‫لمع‬..‫ ا‬.‫قه‬...‫ )ف‬and also to an
ideology of economics based on the teachings of Islam
that takes a middle ground between the systems of
communism and capitalism.
Example : KSA

Principles of Islamic Economic System

 Social Justice and Equality
 Right to own property
 Widespread distribution of wealth
OBJECTIVES FOR DISTRIBUTION OF WEALTH

 Practical System Of Economy

 Enabling one to get what he deserves

 Eradicating Concentration of Wealth

 ZAKAT

USHR

KAFFARAT

SADAQAT-UL-FITR

NAFAQAT

WIRASAT

JIZYA