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Outline

Title
Abstract
FAQs
Introduction
Objectives
Methodology
Literature Review
Islamic Consumption Framework and Discussion
Conclusion
References

Islamic consumer theory

Profile image of Basharat HossainBasharat Hossain

2014, Journal of economics, finance and management

Abstract

This paper presents a comparative view of Islamic economic rationalism and consumption framework to its counterpart's conventional capitalist and socialist economic system. In conventional economic system, only self-interest and rationality of the consumer is the main principle to maximize utility whereas moral, religious, national, historical, cultural and social values are absent here. Consequently, the consumers enjoy sovereignty with little or no intervention of regulatory authority to maximize the utility. On the contrary, Islamic economic system designs its rationality and consumption principle in moderation that is far away from extremism where freedom and regulation is moderately recognized. Therefore, Islamic rationality encourages the consumers to maximize his utility by insuring religious, national, historical, cultural and social values. Besides, conventional economics have no treatment to immoral activities of consumer while Islamic economics derived from the Holy Quran and Hadith offers rewards and punishments for moral and immoral activities in worldly and hereafter life.

FAQs

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How does Islamic economic rationalism differ from conventional economic rationalism?add

The paper reveals that Islamic economic rationalism incorporates social and moral considerations, unlike conventional rationalism which emphasizes self-interest and utility maximization as seen in Weber and Tawney's definitions from the 17th century.

What are the major characteristics of an Islamic consumer?add

An Islamic consumer is defined by adherence to Islamic Shariah, seeking both economic and moral utility maximization, and aligning consumption choices with ethical and religious principles.

When was the concept of economic rationalism first introduced?add

Economic rationalism was first articulated by Weber and Tawney in the 17th century, emphasizing the separation of moral values from economic activities.

What explains the consumption framework unique to Islamic economics?add

Islamic economics emphasizes utility maximization not only in material terms but also spiritual fulfillment, adhering to the principles of Shariah as mentioned in various verses of the Al-Quran.

What are the implications of Islamic consumer theory on social justice?add

Islamic consumer theory promotes social and economic justice by discouraging consumption of harmful goods and advocating for charitable practices, as outlined in Al-Quran verses regarding social welfare.

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