Economics with Islamic orientation / Zubair Hasan.

Includes bibliographical references (pages 667-669) and index.

Machine generated contents note: chapter 1 What is Economics About? -- 1.1.Wants and Scarcity -- 1.1.1.Choice-making -- 1.1.2.Values and economics -- 1.2.Definition and Scope -- 1.2.1.Behavioural norms -- 1.2.2.Nature and scope -- 1.3.Methodological Pitfalls -- 1.3.1.Fallacy of composition -- 1.3.2.Causation fallacies -- 1.3.3.Tautological reasoning -- 1.3.4.Exclusionist argumentation -- 1.4.Methods of Economics -- 1.5.Money and Exchange -- 1.6.Microeconomics and Macroeconomics -- 1.7.Problems Economists Seek to Resolve -- 1.8.The Language of Economics -- 1.9.Economic Systems -- 1.9.1.Axiomatic differences -- 1.9.2.Property rights -- 1.9.3.Operational mechanism -- 1.9.4.Motivation scheme -- 1.9.5.Societal priorities -- Summary -- Glossary -- Concepts for Review -- Case Study 1.1 -- Case Study 1.2 -- Test Questions -- chapter 2 Demand and Supply -- 2.1.Markets, Goods and Prices -- 2.2.Early Markets: Example -- 2.3.Demand for Commodities -- 2.4.The Law of Demand -- 2.4.1.Assumptions

Note continued: 2.4.2."Why do most demand curves have a negative slope? -- 2.4.3.Exceptions -- 2.5.Changes in Demand -- 2.5.1.Causes -- 2.6.Supply of Commodities -- 2.6.1.Law of supply -- 2.6.2.Assumptions -- 2.7.Changes in Supply -- 2.7.1.Causes of change in supply -- 2.8.Market Equilibrium -- 2.9.Demand and Supply: Relative Importance -- 2.9.1.Role of price -- 2.10.Equilibrium: Static Versus Dynamic -- 2.11.Applications -- 2.11.1.Administered prices -- Summary -- Glossary -- Concepts for Review -- Case Study 2.1 -- Case Study 2.2 -- Test Questions -- chapter 3 Elasticity of Demand and Supply -- 3.1.The Concept of Elasticity -- 3.2.Price Elasticity of Demand -- 3.3.The Measurement -- 3.3.1.Proportionate change method -- 3.3.2.Total outlay method -- 3.3.3.The line segment ratio or the point method -- 3.3.4.Average revenue and marginal revenue rule -- 3.4.Determinants of EDP -- 3.4.1.Significance of EDP -- 3.5.Elasticity of Demand: Non-price Concepts

Note continued: 3.5.1.Cross elasticity of demand -- 3.5.2.Income elasticity of demand -- 3.6.Price Elasticity of Supply -- 3.7.Determinants of Price Elasticity of Supply -- 3.7.1.Cost elasticity -- 3.8.Elasticity and Islamic Economics -- Summary -- Glossary -- Concepts for Review -- Case Study 3.1 -- Case Study 3.2 -- Test Questions -- chapter 4 Consumption: Analysis and Behavioural Norms -- 4.1.Islam and Consumption -- 4.2.Wants, Needs and Desires -- 4.3.Consumer Behaviour -- 4.3.1.Utility: what it is and what it is not -- 4.3.2.Utility maximization -- 4.4.Consumer's Equilibrium -- 4.4.1.Utility analysis -- 4.4.2.Indifference curves and utility -- 4.4.3.Income effect -- 4.4.4.Substitution effect -- 4.4.5.Price effect and its components -- 4.5.Indifference Curves: Different Shapes -- Summary -- Glossary -- Concepts for Review -- Case Study 4.1 -- Case Study 4.2 -- Test Questions -- chapter 5 Production and Cost Functions -- 5.1.Production: Philosophical and technical Aspects

Note continued: 5.1.1.Factors of production -- 5.1.2.Time and factor (input) classification -- 5.2.Firms and Their Objectives -- 5.2.1.Maximization and minimization -- 5.3.The Production Function -- 5.3.1.Properties of isoquants -- 5.4.Short-run Production Function -- 5.4.1.Total, average and marginal output -- 5.5.Short-run Production Costs -- 5.5.1.Total cost -- 5.5.2.Output and costs -- 5.6.Long-run Cost Curves -- 5.6.1.Firm size and costs -- 5.6.2.Economies of scale -- 5.6.3.Diseconomies of scale -- 5.6.4.Scale, efficiency and social responsibility -- 5.7.Explicit and Implicit Costs -- 5.7.1.Normal profit -- 5.8.Cobb-Douglas Production Function and Returns -- Summary -- Glossary -- Concepts for Review -- Case Study 5.1 -- Case Study 5.2 -- Test Questions -- chapter 6 Perfect Competition -- 6.1.Market Structures -- 6.2.Profit Maximization -- 6.3.Perfect Competition -- 6.3.1.The model -- 6.3.2.Pure competition -- 6.4.Profit Maximization in the Short Run

Note continued: 6.4.1.Total revenue -- total cost approach -- 6.4.2.Marginal cost -- marginal revenue approach -- 6.4.3.Relationship between MP, AP, MC and AVC -- 6.4.4.Cost efficiency again -- 6.4.5.Profit maximization in the long run -- 6.5.Producers' Surplus -- 6.6.Effect of a Per Unit Tax on Output -- Summary -- Concepts for Review -- Glossary -- Case Study 6.1 -- Case Study 6.2 -- Test Questions -- chapter 7 Monopoly and Pricing Power -- 7.1.The Other Limit -- 7.2.Nature of Monopoly Power -- 7.2.1.Measuring monopoly power -- 7.3.Sources of Monopoly Power -- 7.3.1.Natural monopolies -- 7.3.2.Legal monopolies -- 7.3.3.Scale and monopolies -- 7.3.4.Islam and monopolies -- 7.4.Monopoly and Profit Maximization -- 7.5.Factors Influencing Pricing Decision -- 7.6.Price Discrimination -- 7.7.Rules for Initial Price Fixation -- 7.8.Markup Pricing and Islamic Banks -- 7.9.Monopoly and Taxation -- 7.10.Monopoly and Social Welfare -- 7.11.Why Do Monopolies Exist?

Note continued: 7.12.Regulation of Price -- Summary -- Glossary -- Concepts for Review -- Case Study 7.1 -- Case Study 7.2 -- Test Questions -- chapter 8 Monopolistic Competition and Oligopoly -- A.Monopolistic Competition -- 8.1.New Structures -- 8.2.Distinctive Features -- 8.3.Price and Output -- 8.3.1.Short-run equilibrium -- 8.3.2.Long-run equilibrium -- 8.4.Inefficiency of the Structure -- 8.5.The Variety Issue -- 8.5.1.Islamic angle -- 8.6.Advertising Again -- B.Oligopoly -- 8.7.Salient Features -- 8.8.Concentration Measurements -- 8.9.Firms' Behaviour -- 8.10.Models -- 8.10.1.The Kinked demand theory -- 8.10.2.Collusion: motivations -- 8.10.3.Price leadership -- 8.11.Efficiency vis-a-vis Oligopoly -- Summary -- Glossary -- Concepts for Review -- Case Study 8.1 -- Case Study 8.2 -- Test Questions -- chapter 9 Factor Pricing and Equity -- 9.1.From Production to Distribution -- 9.2.Marginal Productivity and Distribution: The Theory -- 9.3.Evaluation of the Theory

Note continued: 9.4.Factor Returns in Monopolistic Markets -- 9.5.Islam and Income Distribution -- 9.5.1.Equity criteria -- 9.6.Role of the State -- Summary -- Glossary -- Concepts for Review -- Case Study 9.1 -- Test Questions -- chapter 10 Wages of Labour -- 10.1.Labour and Its Peculiarities -- 10.2.Demand for Labour -- 10.2.1.Factors affecting demand for labour -- 10.3.Supply of Labour -- 10.3.1.Changes in labour supply -- 10.3.2.Factors influencing labour supply -- 10.4.Labour Market Equilibrium -- 10.5.Monopsony -- 10.6.Some Other Issues -- 10.6.1.Islam and labour -- 10.6.2.Minimum wage -- 10.6.3.Collective bargaining -- 10.6.4.Wage differences -- 10.7.Profit-Sharing -- Summary -- Glossary -- Concepts for Review -- Case Study 10.1 -- Case Study 10.2 -- Test Questions -- chapter 11 Rent, Interest and Profit -- A.Rent -- 11.1.The Concept and Theory -- 11.2.Ricardo on Rent -- 11.2.1.Criticism of the theory examined -- 11.2.2.Rent and price -- 11.3.Modern Theory

Note continued: 11.3.1.Some implications -- 11.4.Rent in Islamic Economics -- B.Interest -- 11.5.What Is Interest? -- 11.5.1.Why pay interest? -- 11.5.2.Interest rate determination -- 11.6.Why Islam Prohibits Interest? -- 11.6.1.Interest payments are illogical and unjust -- 11.6.2.Islamic alternative -- C.Profit -- 11.7.Indifferent Attitude -- 11.7.1.Issues in profit theory -- Summary -- Glossary -- Concepts for Review -- Case Study 11.1 -- Case Study 11.2 -- Test Questions -- chapter 12 Markets, Environment and Sustainability -- 12.1.Markets versus Welfare -- 12.1.1.The fundamental theorem -- 12.1.2.Three basic questions -- 12.2.Tools for Analysis -- 12.2.1.Pollution and absorption -- 12.2.2.Demand and supply framework -- 12.3.Remedial Measures -- 12.3.1.Coasian theorem: creation of property rights -- 12.3.2.Standard setting and pollution -- 12.3.3.Pollution charges -- 12.3.4.Tradable pollution permits -- 12.4.Sustainability -- 12.4.1.Islamic viewpoint -- Summary

Note continued: Glossary -- Concepts for Review -- Case Study 12.1 -- Case Study 12.2 -- Test Questions -- chapter 13 Money Banking and Prices -- 13.1.Money: Definition and Functions -- 13.2.State and Money -- 13.2.1.From metals to paper -- 13.3.The Rise of Central Banks -- 13.3.1.Issuance of currency notes -- 13.3.2.The currency principle: representative paper money -- 13.3.3.The banking principle: convertible paper money -- 13.4.Methods of Note Issue -- 13.5.Money and Economies -- 13.6.Money and Prices -- 13.7.Price Level Changes -- 13.8.Money Supply and Price Level -- 13.9.The Rise of Islamic Banking -- 13.10.The Distinctive Features of the Islamic Approach to Finance -- 13.10.1.Ban on giving or taking interest -- 13.10.2.Avoidance of gharar or indeterminacy -- 13.10.3.Participatory financing -- 13.10.4.Enhanced customer protection -- 13.10.5.Asset-based finance -- Summary -- Glossary -- Concepts for Review -- Case Study 13.1 -- Case Study 13.2 -- Test Questions

Note continued: chapter 14 Macroeconomics: Nature and Significance -- 14.1.Macroeconomics: Content and Scope -- 14.2.Policy Objectives -- 14.2.1.Growth -- 14.2.2.Full employment -- 14.2.3.Distributive justice (equity) -- 14.2.4.Stability -- 14.2.5.Environmental care -- 14.2.6.Poverty eradication -- 14.2.7.Self-reliance -- 14.3.Conflicts and Trade-offs -- 14.4.Role of the State -- 14.5.Two Approaches -- 14.6.Basic Assumptions -- 14.7.GNP Growth and Human Welfare -- Summary -- Glossary -- Concepts for Review -- Case Study 14.1 -- Case Study 14.2 -- Test Questions -- chapter 15 National Income: Variants and Measurement -- 15.1.National Income and Accounts -- 15.2.A Simple Two-Sector Model -- 15.3.Productive and Unproductive Activities -- 15.4.Intermediate Products and Final Products -- 15.5.Input -- Output Tables -- 15.6.Methods of Measuring National Product -- 15.6.1.Expenditure method -- 15.6.2.Output method -- 15.6.3.Income method -- 15.7.Personal and Disposable Incomes

Note continued: 15.8.Some Special Transactions -- 15.8.1.Sale of second-hand goods -- 15.8.2.Interest on public debt -- 15.8.3.Stock market transactions -- 15.9.Domestic Versus National Product -- 15.10.Composition of Final Output -- 15.10.1.The expenditure side -- 15.10.2.The income side -- 15.11.Measurement of GNP in Developing Countries -- Summary -- Glossary -- Concepts for Review -- Case Study 15.1 -- Test Questions -- chapter 16 Aggregate Demand and Aggregate Supply -- 16.1.Aggregative Concepts -- 16.1.1.Equilibrium -- 16.2.Price Level -- 16.3.Aggregate Demand -- 16.3.1.Why do aggregate demand curves slope downwards -- 16.4.Determinants of Aggregate Demand -- 16.4.1.Private consumption -- 16.4.2.Public consumption -- 16.4.3.Private investment -- 16.4.4.Public investment -- 16.4.5.Net expenditures on exports -- 16.4.6.Income variations abroad -- 16.4.7.Foreign exchange rate -- 16.5.Aggregate Supply -- 16.5.1.Short-run supply curve

Note continued: 16.5.2.Long-run supply curve: full employment -- 16.6.Determinants of Aggregate Supply -- 16.6.1.Input prices -- 16.6.2.Prices of imported resources -- 16.6.3.Market corrections -- 16.6.4.Productivity -- 16.6.5.Taxes and subsidies -- 16.6.6.Regulation policy -- 16.6.7.Socio-political environment -- 16.7.Changes in Equilibrium -- 16.7.1.Changes in aggregate demand and equilibrium -- 16.7.2.Changes in aggregate supply -- Summary -- Concepts for Review -- Glossary -- Case Study 16.1 -- Test Questions -- chapter 17 Aggregate Demand: Consumption and Investment -- 17.1.Introduction -- 17.2.Consumption and Saving Functions -- 17.2.1.Why do average and marginal propensities differ? -- 17.3.Some Complications -- 17.3.1.How is GNP determined? -- 17.3.2.Consumption, savings and investment -- 17.3.3.The multiplier -- 17.3.4.Business and the GNP -- 17.3.5.Government and the GNP -- 17.3.6.Multiplier versus stabilizing operators -- Summary -- Glossary

Note continued: Concepts for Review -- Case Study 17.1 -- Case Study 17.2 -- Test Questions -- chapter 18 Aggregate Supply: Factor Incomes and Savings -- 18.1.Supply Side Economics: Origin and Characteristics -- 18.2.Investment, Capital Formation and Production -- 18.3.Investment: Types and Characteristics -- 18.3.1.Plant and machinery purchases are irregular -- 18.3.2.Fixity of capital in the short run -- 18.3.3.Investment in inventories -- 18.4.Role of Expectations and Profits -- 18.4.1.Role of profit -- 18.5.The Accelerator and the Checks -- 18.6.Demand for Labour -- 18.6.1.Money wage and price level flexibility -- 18.6.2.Money wage floor model -- 18.6.3.Evaluation of the model -- 18.7.Employment and Wages in the Short Run -- 18.7.1.Why are wage rates sticky downward? -- 18.7.2.Phillips curve -- 18.7.3.Wages, output and productivity -- 18.8.Aggregate Supply and Taxation -- 18.8.1.Labour supply -- 18.8.2.Supply of capital -- Summary -- Glossary -- Concepts for Review

Note continued: Case Study 18.1 -- Case Study 18.2 -- Test Questions -- chapter 19 Markets in Equilibrium: The IS -- LM Model -- 19.1.Introduction -- 19.2.Equilibrium of Goods and Services Market -- 19.3.Investment Interest and Income -- 19.4.Savings, Interest and Income -- 19.4.1.Position of the IS curve -- 19.5.Money Market Equilibrium: The LM Curve -- 19.5.1.Demand for money -- 19.5.2.Nominal money and real money -- 19.5.3.Supply of money -- 19.5.4.The LM curve -- 19.6.The IS -- LM model -- 19.7.Dynamic Change and Equilibrium Adjustment -- 19.8.Limitations of the IS -- LM Model -- 19.9.Modifications in the IS -- LM Model -- Summary -- Glossary -- Concepts for Review -- Case Study 19.1 -- Case Study 19.2 -- Test Questions -- chapter 20 Monetary Policy: Bases, Goals and Instruments -- 20.1.Money and Economic Stability -- 20.2.Quantity Theory of Money -- 20.3.Demand for Money -- 20.4.Money Supply Components -- 20.5.Credit (Money) Creation by Banks -- 20.5.1.State intervention

Note continued: 20.6.Demand and Supply Mismatch -- 20.6.1.Inflation -- 20.6.2.What causes inflation? -- 20.6.3.Deflation -- 20.7.Goals and Targets -- 20.8.Central Banks and Credit Control -- 20.8.1.Bank rate policy -- 20.8.2.Statutory reserve variations -- 20.8.3.Profit -- interest linkage -- 20.8.4.Open market operations -- 20.8.5.Moral suasion -- 20.9.The Ailment and the Cure -- Summary -- Glossary -- Concepts for Review -- Case Study 20.1 -- Case Study 20.2 -- Test Questions -- chapter 21 Fiscal Policy: Public Revenue and Expenditure -- 21.1.Government and Economy -- 21.2.Sources of Revenue -- 21.3.Theories of Taxation -- 21.3.1.Ability-to-pay theorem -- 21.4.Characteristics of a Good Tax System -- 21.5.Tax Types -- Direct and Indirect -- 21.6.Price Elasticity and Incidence -- 21.7.Cost and Incidence -- 21.8.Objectives of Fiscal Policy -- 21.9.Sukuk and Public Revenue -- 21.10.Public Expenditure -- 21.11.Islam and Fiscal Policy -- 21.11.1.Sources of revenue

Note continued: 21.12.Public Expenditure and Islam -- Summary -- Glossary -- Concepts for Review -- Case Study 21.1 -- Case Study 21.2 -- Test Questions -- chapter 22 National Income Distribution -- 22.1.Introduction -- 22.2.Measurement of Inequalities -- 22.2.1.Limitations -- 22.3.Growth and Equity Relationship -- 22.3.1.The case of malaysia -- 22.4.Income: Generation and Distribution -- 22.4.1.Asset distribution -- 22.4.2.Redistributive measures and intergeneration equity -- 22.4.3.Impact of macroeconomic variables on income distribution -- 22.4.4.Effects of distribution on macroeconomic variables -- 22.5.Limitations and Precautions -- 22.6.Cross Country Income Inequalities -- 22.7.Islamic Economics and Income Distribution -- Summary -- Glossary -- Concepts for Review -- Case Study 22.1 -- Case Study 22.2 -- Test Questions -- chapter 23 Inter-temporal and International Income Comparisons -- 23.1.Introduction -- 23.2.Inter-temporal Income Comparisons

Note continued: 23.3.Real Income Measurement: Quantity and Price Indices -- 23.3.1.Chain base indices -- 23.4.Steps in the Construction of Price Indices -- 23.4.1.Specifying the purpose of construction -- 23.4.2.Choice of the base year -- 23.4.3.Data collection -- 23.4.4.Sources of data -- 23.4.5.Deciding on a weighting system -- 23.4.6.Combining the data -- 23.5.Deflating the Nominal Aggregates -- 23.5.1.Implicit GDP deflators and CPI compared -- 23.6.Limitations of Index Numbers -- 23.6.1.Real income and welfare -- 23.6.2.Commodities and the weighting system -- 23.6.3.Averaging the data -- 23.7.GNP Deflators -- 23.8.International Comparisons -- 23.8.1.World bank atlas method -- 23.8.2.The ICP conversion procedures -- 23.8.3.Need for improvement -- Summary -- Concepts for Review -- Glossary -- Case Study 23.1 -- Case Study 23.2 -- Test Questions -- chapter 24 Open Economies: International Trade, Balance of Payments and Exchange Rates -- 24.1.Introduction

Note continued: 24.1.1.Gains from trade -- 24.2.Basis of Trade: The Theory -- 24.2.1.Absolute differences in costs -- 24.2.2.Comparative differences in costs -- 24.2.3.Terms of trade -- 24.3.Barriers to Trade -- 24.3.1.Free trade versus protection -- 24.3.2.UNCTAD XI recommendations -- 24.4.Balance of Payments -- 24.4.1.Current account -- 24.4.2.Capital and financial account -- 24.4.3.Official reserves -- 24.5.Exchange Rates: Fixity versus Flexibility -- 24.5.1.Fixed rates -- 24.5.2.Flexible rates -- Summary -- Glossary -- Concepts for Review -- Case Study 24.1 -- Case Study 24.2 -- Test Questions