Intermediate Good


Health Economics

  • A good or service that does not itself yield utility to an individual but that might be used to create another good or service that is a final good or be used in conjunction with other goods and services to yield utility. Although it is sometimes said that health care does not yield utility (apparently on the ground that illness has negative utility), cost-effective health care does - that is, (expected) utility is higher with it than without, even though utility might have been even higher had the need for health care not arisen in the first place.