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1. INTRODUCTION OF ECONOMICS -Study of human behavior in relation to use of scare resources t fulfill unlimited wants -Scare resources -Limited resources -Achieving the highest utility

2. Fundamental Belief

2.1. -The belief of monotheism(Tawheed)

2.2. - The belief that Prophet Muhammad SAW was the last apostle of Allah and his werdict is final

2.3. -The belief that man is eventually held accountable for his deeds before his Lord on The Day of Judgement

3. Relationship between IMAN, ISLAM, and IHSAN ISLAM -Islam in Arabic literally: denotes submission, surrender and obedience to Allah -technically: to submit to Allah in the manner shown by the Prophet Muhammad SAW *KIND OF SUBMISSIONS -Submission as Fitrah(man has originally good nature) -Submission as Amanah(surrender service to Allah) IMAN -The Arabic word literally means "to know", "to believe" refers to knowledge and belief -Iman is the firm belief in the articles of faith arising out of knowledge about them - Voicing with tongue - Performing amal with the limbs *So, we may say that iman is: -A state of mind and heart one has to do with the recognition of the truth -Commitment to the truth he recognize -Activity on the basis of the truth he recognize IHSAN - The quality of being good and beautiful -Closely related to the concept of Ikhlas(sincerity) - The opposite of ikhlas is nifaq and riya' *Connotation explain the word ihsan -To act as it one is seeing Allah - Aware of Allah presence

4. WORLDVIEW -Vision of reality and truth that appear before one's mind revealing what existence is all about - Centered on the principles of Tawhid or unity of God

4.1. GOD - Belief in unity of God, Tawhid -Oneness of God *Expressed in Khalimah Syahadah -Core concept /foundation of islamic worldview -Other aspect of islamic worldview are logical extension 3 aspect Tawhid - Oneness of Lordship of Allah -Oneness in worship of Allah -Oneness of the name and qualities -Al-RAZZAQ -Al-MALIKUL -MULK -Al-GHANI

4.2. RELIGION -Religion is a private matter between individuals and God - No role to play in determining public affair -Science replaced religion as authority ISLAM IS DIN *Is not limited to rituals -A way of life -Detailed code of conduct -Wiling and conscious submission to Allah in all aspect of life -Economics and its related activities are potential ibadah or acts of worship

4.3. MAN -Arabic word "insan" from root word "nasiya" means "he forgot" -The best of creation, created good -Given aql and knowledge -Created as vicegerent -Created as abd (worshiper of Allah) *Implication of roles -As khalifah -As abd -Cannot be khalifah unless you are first and foremost an abd

4.3.1. NATURE -Universe in Al-QURAN -Comprise of heaven and earth and all in between -Mention about vegetation and fruit, night an days - Another sign to direct man to worship Allah -Nature bounty from Gd 2 types of nature -Material World -Unseen World(ghayb and invisible) AIM IN LIFE -To achieve happiness(falah) -Ultimate success and pleasure of Allah Man can prepare for happiness(sa'adah) in this world and hereafter 1)Al-Fadail Al-Nafsiyyah(the good of the soul) 2)Al-Fadail Al-Jismiyyah(the bodily goods) 3)Al-Fadail Al-Kharijiyyah(external goods) 4)Al-Fadail Tawfiqiyyah(the good of divine grace) ASPECT OF ANALYSIS -To understand position of religion and its implication of economic

4.3.2. SECULAR -Secular activities: deal with the "here and now" or activities on this world in our lives -Concerns with worldly life ONLY -Islamic worldview encompases this life& hereafter -Not "anti" this world - Islam has clear guideline to undertake life in this world SECULARIZATION -The process of "rescuing mans" and language -Religious -Metaphysical Control -3 Component of secularization -Disenchantment of Nature -Desacralization of Politic -Deconsecration of Value SECULARISM -Ideology that says only this world is relevant -Materialism -It donates that only world is real -References to the "hereafter" is irrelevant ISLAM WOULD NOT ACCEPT THIS IDEOLOGY

4.4. ISLAMIC VS WESTERN WORLDVIEW -Natural -Theories to explain human behaviour ISLAMIC WORLDVIEW BASED ON ISLAM -Revelation-fundamental concept in the Quran are not open for charge in meaning -Flexible but not replaceable -Western=Scientific Worldview


5.1. MAJOR ECONOMICS ISSUES CONVENTIONAL ECONOMICS -Unlimited want -Limited resources -Achieving the highest utility ISLAMIC ECONOMICS -Must be derived from Islamic worldview -Not contradict the shariah -shariah constraint to be observed in making choice -Resources are unlimited

5.2. FUNDAMENTAL PRINCIPLES OF THE ECONOMICS PHILOSOPHY OF ISLAM -General accessibility of the bounties of nature -The right to make a living -The right of ownership -The spirit of healthy competition -No artificial way to enforce equality -No free economy -Duties obligatory for individuals -Duties obligatory for society

5.3. THE ECONOMICS PHILOSOPHY OF ISLAM -Social Justice -Complete balance between the right and obligation of individuals and society -Equitable economic system -Individual should have equal opportunity for his moral, social and material growth -People-friendly political system -Requires a economics system to be based on a democratic polity -Equality of opportunities -Provide proper avenues of material progress to each and every member of thre society