Chapter 7: Solutions to Questions and Problems
NOTE: All end of chapter problems were solved using a spreadsheet. Many problems require multiple
steps. Due to space and readability constraints, when these intermediate steps are included in this
Assignment due by 6th December (Sunday)
Question 1: Refer to the information provided in Figure 1.1 below to answer the questions that
a) Using Figure 1.1, derive the equation for consumption function.
b) Using Figure 1.1, de
Jeddah lives its first gas crisis at the beginning of February 2015. This crisis
caused up to 20% of gas cylinders outlets and stores to close. While some people
changed to electric ovens, others stand in long lines for hours to fill their gas
Gross Domestic Product (GDP)
GDP is a measure of output!
Why Do We Care?
Because output is highly correlated (at certain times)
with things we care about (standard of living, wages,
unemployment, inflation, budget and tra
THE REALITY OF THE MONEY
By: Mohammed Al-haddar
12 March 2012
What is Seigniorage of Fiat Money?
Currency Notes and Coins
Other Accounting Money
Money Created Out of Nothing
Sources of Seigniorage
Fractional Reserve Requirement
An increase in the general level of prices in an
economy that is sustained over a period of time
is called inflation.
When demand is more than the supply that may
lead to inflation.
Inflation is rate of chan
How the Government influences
how I make money.
Take out a sheet of paper and answer the
What are Goods?
What are Services?
What are Resources?
What is Scarcity?
Def. The metho
Banks and The Money Supply
Banks can influence the quantity of
demand deposits in the economy and
the money supply.
Banks and The Money Supply
Reserves are deposits that banks have
received but have not loaned out.
In a fractional reserve banking system
Q1: discuss the concept of GDP, and calculate the GDP from the following information. you
should calculate the GDP by the three methods (production, income, and expenditure)
Salary and wages
Revenue from selling tea
Selling tea for public
This quiz is 5 Marks quiz.
The following table shows the price of a unit of Gas and Oil in two countries, Saudi
Arabia and United Arab Emirates.
THE MAQASID AL-SHARIAH
AND THE ROLE OF THE
FINANCIAL SYSTEM IN
M. UMER CHAPRA
Islamic Research and Training Institute
Islamic Development Bank
Jeddah, Saudi Arabia
THE PRIMARY OBJECTIVE OT
TO BE A BLESSING
The Saudi governments long-awaited decision of imposing fees on
undeveloped plots within cities, known as white land
This was a statement which became well known in March 2015 within Saudi Arabia realestate market
Human wants are unlimited,
but resources are not.
An economy, or economic system, is
the way a nation makes economic
choices about how the nation will use its
resources to produce and distribute
goods and services.
28th of March
Witness statement to whom it may concern
Being one of the people who occasionally seeks academic help from Emil and visits
him, and in January I have seen the symbols which he has drawn during the holiday. I
personally don't consider them of