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In the Nicomachean Ethics, written in 350 BCE, Aristotle stated that happiness (also being well and doing well) is the only thing that humans desire for their own sake, unlike riches, honour, health or friendship. He observed that men sought riches, or honour, or health not only for their own sake but also in order to be happy. For Aristotle the term eudaimonia, which is translated as 'happiness' or 'flourishing' is an activity rather than an emotion or a state. Eudaimonia (Greek: εὐδαιμονία) is a classical Greek word consists of the word "eu" ("good" or "well being") and "daimōn" ("spirit" or "minor deity", used by extension to mean one's lot or fortune). Thus understood, the happy life is the good life, that is, a life in which a person fulfills human nature in an excellent way. Specifically, Aristotle argued that the good life is the life of excellent rational activity. He arrived at this claim with the "Function Argument". Basically, if it is right, every living thing has a function, that which it uniquely does. For Aristotle human function is to reason, since it is that alone which humans uniquely do. And performing one's function well, or excellently, is good. According to Aristotle, the life of excellent rational activity is the happy life. Aristotle argued a second best life for those incapable of excellent rational activity was the life of moral virtue.

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