Monday, March 9, 2015

The theory of consumer behavior (25)

Prophet’s injunction which allows Muslim to save for the future consumption shows the importance of managing household expenses properly for the benefit of all family members.
The prohibition of interest rate where people save idle money to get some fixed income is replaced by the expected rate of return on savings which generates the savings to get profits.
Conclusion
o   As a conclusion the theory of consumer behaviour between conventional and Islamic economic systems can be distinguished by looking into its:
§  postulates
§  and principles.
o   The Islamic worldview of belief in the oneness of God and life after death is totally different with conventional secularism.
o   The two methods of positive and normative in conventional has been used to explain economic phenomenon.
o   Islamic economists meanwhile refer to Islamic sources and conventional theories that are not contradicted with shariah.
o   While the former is known as the normative the latter is the positive methods of Islamic economy.
to be continued...

Source: Islamic Science University of Malaysia

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