ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Economics)

WARNING
1. Plagiarism or hiring of ghost writer(s) for solving the assignment(s) will
debar the student from award of degree/certificate, if found at any stage.
2. Submitting assignments borrowed or stolen from other(s) as one’s own will
be penalized as defined in “AIOU plagiarism policy”.

Course: Islamic Economics-II (4676) Semester: Autumn, 2017

Level: M.Sc Total Marks: 100
ASSIGNMENT No. 1
(Units 1-5)
Q.1- What are the major social and economic evils of interest? Present some
suitable examples from the existing situation of individuals and countries.
(20)

Q.2- Define money and interest in the light of Islamic shariah. Also compare the
concept of money and interest in Islamic system with those of secular
system. (20)

Q.3- Does fixed amount of mark-up comes under the heading of riba? How can
we eliminate the mark-up from the Bai-Muajjal murabaha? (20)

Q.4- Explain the trade related modes of financing and discuss their applicability
in the present day banking system. (20)

Q.5- What is inflation? How inflation level can be settled at desired level in an
Islamic frame work? (20)

ASSIGNMENT No. 2
(Units 6-9)
Q.1- What is the role of Zakat in fiscal policy of an Islamic state? What are the
limitations in using Zakat as a tool of fiscal policy? (20)

Q.2- How are the taxes different from Zakat? Discuss the similarities and
difference between them. (20)

Q.3- Compare and contrast the concept of development in Islamic framework

with that of conventional one. (20)

Q.4- Explain the term Zakat. What are Zakatable items? What is the rate of Zakat
on each of them? (20)

Q.5- Suggest three development plans for Muslim countries, categorizing them
lower, middle and upper middle income countries. (20)