section_path: Theories of the intrinsically good/Welfarist theories/Objective theories of well-being
section_name: Objective theories of well-being
paragraph_text: Objective theories of well-being
  
  The idea that the ultimate good exists and is not orderable but is globally measurable is reflected in various ways in economic (classical economics, green economics, welfare economics, gross national happiness) and scientific (positive psychology, the science of morality) well-being measuring theories, all of which focus on various ways of assessing progress towards that goal, a so-called genuine progress indicator. Modern economics thus reflects very ancient philosophy, but a calculation or quantitative or other process based on cardinality and statistics replaces the simple ordering of values.
  
  For example, in both economics and in folk wisdom, the value of something seems to rise so long as it is relatively scarce. However, if it becomes too scarce, it leads often to a conflict, and can reduce collective value.
  
  In the classical political economy of Adam Smith and David Ricardo, and in its critique by Karl Marx, human labour is seen as the ultimate source of all new economic value. This is an objective theory of value, which attributes value to real production-costs, and ultimately expenditures of human labour-time (see law of value). It contrasts with marginal utility theory, which argues that the value of labour depends on subjective preferences by consumers, which may however also be objectively studied.
  
  The economic value of labour may be assessed technically in terms of its use-value or utility or commercially in terms of its exchange-value, price or production cost (see labour power). But its value may also be socially assessed in terms of its contribution to the wealth and well-being of a society.
  
  In non-market societies, labour may be valued primarily in terms of skill, time, and output, as well as moral or social criteria and legal obligations. In market societies, labour is valued economically primarily through the labour market. The price of labour may then be set by supply and demand, by strike action or legislation, or by legal or professional entry-requirements into occupations.