MICROECONOMICS OBJECTIVES FROM CONVENTIONAL PERSPECTIVE, MACROECONOMICS…
MICROECONOMICS OBJECTIVES FROM CONVENTIONAL PERSPECTIVE
1) To achieve full employment
refers to level of employment rate where there is no existence of cyclical or involuntary unemployment. Thus it is difficult to assume that full employment refers to 100% of the labour force being employed.
2) To achieve price stability
it refers to the efforts of ensuring that the inflation rate in the country is kept as low as possible. This involve certain macroeconomic policies such as fiscal and monetary policies.
3) To achieve economic growth
This growth can be measured by calculating the percentage increase in national income for the current period as compared to the previous period. A nation that has achieved economic growth will reflect a positive economic performance. This shows that the economic environment is productive not only in terms of output and as increase in income but also in labour productivity.
5) To achieve equilibrium in the foreign sector
Foreign sectors means economic transactions or activities that take place beyond the political boundaries. It includes transactions such as imports and exports, investments in other countries and inter-country tourism. A country will try to get an overall surplus of balance of payments that indicates greater inflow than outflow of money.
4) To achieve an equitable distribution of income
It is necessary to ensure that the economic growth of a nation is shared equally among the population. Income inequality is a major concern for policymakers to resolve particularly in multiracial countries such as Malaysia, Singapore, Australia and United States.
MACROECONOMICS FROM ISLAMIC PERSPECTIVES
1) Social Justice
aims to achieve spiritual salvation to human happiness. It is based on the principle that all existence in the universe belong to Allah.
2) Equitable Distribution Of Income
Islam insists on a powerful built-in income redistributions mechanism; nevertheless some income inequality is allowed since it promotes individual initiative.
3) Universal Education
In an islamic economy, the government must subsidize or provide free education to ensure that education is available to all, regardless of one's financial standing and possession of properties.
4) Optimal Rate Of Economic Growth
Growth in an islamic economy is comprehensive and includes the moral, spiritual and material aspects of a man's life. In terms of capital information, it includes human capital and material capital.
5) Maximization of employment generation
An islamic economy must ensure that economic growth results in maximum contribution to the creation of new employment opportunities. The objective is however not to attain full employment at the cost of economic efficiency.