# Measure of Economic Value Summary::No objective measure exists for measuring economic value. ==I may have some duplications with this prospect.== # The Measure of Economic Value The next question becomes, how can an economic system operate effectively and efficiently with a value system measured only by the preferences of individuals — and preferences that only can be ranked on an ordinal scale? Even the individual cannot tell precisely how much more or less he values one economic good from another. Yet, clear explanations of all economic activity originate from this measure of value. Since the individual always assigns value to economic goods, the individual also determines the measure of that value. The method of valuation remains consistent amongst all individuals. They simply assign an ordinal ranking to all economic goods. Of course that ranking generally only applies to the goods with which they engage in exchange. No definitive measure of value exists apart from the preferences of individuals. ----- [[subjective-value theory]] [[Value - Source & Measure]]