KOLEJ PROFESIONAL MARA BANDAR MELAKA SCHEME OF WORK COURSE NAME COURSE CODE CREDIT HOURS CONTACT HOURS

SEMESTER STATUS SESSION : : : : : : : ISLAMIC ECONOMICS ECO 2063 03 03.5 03 CORE JAN - JUN 2012 PN MASFUFAH BT AB RAHIM DEPARTMENT OF ACCOUNTING AND QUANTITATIVE (AW07)

LECTURERS INFORMATION Lecturers : Room :

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SYNOPSIS This introductory course discusses the important link between Islamic worldview, its sources of knowledge and methodology, the Islamic economic system and how it addresses real economic activities. Thus, the role and position of fundamental concepts in Islamic teachings are discussed in relation to the goals of an Islamic economic system and activities of consumption, production and distribution.

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COURSE OBJECTIVES

On completion of this subject, students should be able to: provide a broad understanding of the foundations and methodology of Islamic economics. discuss the goals and features of an Islamic economic system expose students to the basic principles in Islamic economics to prepare them for further studies.

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LEARNING OUTCOMES Upon completion of this course the students should have the necessary theoretical background and analytical understanding to: define and explain fundamental concepts in Islamic economic worldview. understand the sources of knowledge of Islamic economics and its methodology. identify and analyze the features of an Islamic economic system. apply the important principles as producers and consumers in an Islamic economy.

Transferable Skill :

Analytical skill Information search skill Lecture Active learning (group discussion, fact finding, presentation) Tutorials Assignment

Teaching Learning And Assessment Strategy:

Scheme of work/ECO 2063/JD2011

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TOTAL STUDENTS LEARNING TIME (SLT) L = Lecture T = Tutorial R = Revision P = Practice O = Others Face to face L 28 T 28 R 4 O 7 Independent Learning Time (ILT) 83 Total Student Learning Time 150

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SUBJECT CONTENTS WEEK 1. 1-3 TOPICS Islam, its Worldview and Islamic Economics Islam definition of Islam: iman, amal, ihsan; The Islamic Worldview god, man, nature/universe, religion; the nature and characteristics of man; man's role as `abd and khalifah; nature/universe in Islam; the concept of din and its significations to economic activity; Islamic Economics definition of economics; scarcity and choice and the economic problems; definition and scope of Islamic economics; 3 4-5 LOD L 6 1 T 6 REFFERENCES Haneef, M. A., (1997), Islam, the Islamic worldview, and Islamic economics, IIUM Journal of Economics & Management, 5(1), 39-65.

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QUIZ 1 (CHAPTER 1)

Methodology of Islamic Economics Fiqh, usul al-fiqh and Islamic economics; stages in Islamic economic methodology - issues; comparison with western economic methodology

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3. The Islamic Economic System

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2. Methodology of Islamic Economics Methodology Theory of knowledge - definition and scope; sources and channels of knowledge in Islam; definition; Shari'ah, - definition, scope, sources and issues;

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1. Kahf, M., (2005), Islamic

economics system - a review, In Syed Omar Syed Agil & Aidit Ghazali (eds.), Readings in the concept and methodology of Islamic economics (pp.77-90), Kuala Lumpur: CERT Publications. Khan, M. A., (2005), Methodology of Islamic economics, In Syed Omar Syed Agil & Aidit Ghazali (eds.), Readings in the Concept and Methodology of Islamic Economics (pp. 55-76), Kuala Lumpur: CERT Publications.

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Economic System - Definition; Components; Classifications/ Characteristics; Islamic Economic System - General Introduction, Philosophical Foundations; Operational Principles and Goals; Property Ownership - Definitions and Types; General Principles and Types of Ownership in Islam and Implications for the Economic System; Motivation/Incentives - Definition, Types and Importance; Relationship between Islamic Worldview and Motivation; Implications for `rational' Behaviour;

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Khan, M. A., (1982), Al-Hisba and the Islamic economy, In Ibn Taymiya, Public duties in Islam (Translated by Muhtar Holland), Leicester: Islamic Foundation.

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Organization of Decision Making Definition and Types; The Concept of Shura and Implications in Economic Decision Making;

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Coordination Mechanism Definition and Types; The Importance of Markets and the Importance of Planning; 8 9 - 11

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TEST 1 (CHAPTER 2 & 3) 4. Allocation of Resources in an Islamic Economic System 2 6 6 Importance of Resource Allocation; The Role and 2 Limitations of Markets; Markets Under Islam; Supply and 2 Demand; The Role of the State; 2 The Institution of Al-Hisbah: 2 Functions in an Islamic Economic System. Normative and Technical Aspects of Resource Allocation and their Application in Consumption and Production from an Islamic perspective. 2 2 2 2

Kahf, M., (1992), The theory of consumption, In Sayyid Tahir, Aidit Ghazali, & Syed Omar Syed Agil (eds.), Reading in microeconomics: an Islamic perspective (pp. 61-68), Kuala Lumpur: Longman Malaysia.

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QUIZ 2 (CHAPTER 4) 5. Distribution 2 6 6 Goals and principles of distribution in Islam; 2 Types/categories of distribution in economics; Equity, Equality and Justice; Provision of Basic Needs

Iqbal, M., (1986), Introduction, In Iqbal, M. (ed.), Distributive justice and need fulfillment in an Islamic economy, Leicester: The Islamic Foundation.

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and the Reduction of Poverty;

Pre-Production/Initial Distribution;
Concepts of khilafah and amanah and the Ownership of natural resources-arguments for public and private ownership; 2 2

Post-production distribution; Returns to Factors of production; Arguments on minimum wage rate and minimum standard/quality of living. Redistribution; Rationale; positive, voluntary and preventive measures; 14 15 TOTAL OTHERS: Quizes (2) Written test (2) Presentation (1) Assignment (1) Final Exam Total Total Student Learning Time

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TEST 2 (TOPIC 4 & 5) REVISION 32 28 2 2 3 67 150

L1: KNOWLEDGE

L2: APPLICATION

L3: ANALYSIS

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CONTINUOUS ASSESSMENT 2 Quizzes 10% 2 Tests 20% Assignment 10 % Presentation 10% Final Exam 50% TOTAL 100%

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