ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In Islamic economics, the main purpose of production is the balanced of individuals and society’s benefit. Islam accepts the production motive as a motive in conventional economic systems, however, Islam adds moral values to the economic utility.

Detailed explanation-2: -Production in the Islamic economy must be based on three fundamental aspects, namely aspects of belief, knowledge, and deed. Therefore, the benefit of individuals, families, communities, living things, and the earth could be achieved.

Detailed explanation-3: -The central features of an Islamic economy are often summarized as: (1) the “behavioral norms and moral foundations” derived from the Quran and Sunnah; (2) collection of zakat and other Islamic taxes, (3) prohibition of interest (riba) charged on loans.

Detailed explanation-4: -Islam considers economic relations and behavior as a way of integrating society into a higher level of reality. To this end, one is required to view one’s economic attainment as a means, not an end. All rules of conduct relating to economic matters are addressed to individuals and groups.