DIFFERENCES BETWEEN PRIVATE GOOD PRODUCTION AND PUBLIC SERVICES ADMINISTRATION ARE DETAILED. THE BELIEF THAT EVALUATION TECHNIQUES SUITABLE FOR INDUSTRY CAN BE APPROPRIATELY APPLIED TO HUMAN SERVICES IS CHALLENGED. CONSUMERS OF A PUBLIC GOOD DO NOT REVEAL HOW MUCH IT IS WORTH TO THEM, SO THE 'PRICE' MUST BE DETERMINED THROUGH THE POLITICAL PROCESS. IT IS ONLY THROUGH THE BALLOT BOX THAT VOTERS LET GOVERNMENT OFFICIALS KNOW THE VALUE THAT THEY PLACE ON A PARTICULAR SERVICE. THE EFFECTIVENESS OF LIMITED FUNCTIONS, SUCH AS TRAFFIC CONTROL OR STREET MAINTENANCE, IS EVALUATED MORE EASILY THAN THAT OF BROAD FUNCTIONS, SUCH AS CRIME PREVENTION. THIS IS CITED AS A REASON WHY LIMITED FUNCTIONS USUALLY ARE DELIVERED MORE EFFICIENTLY. HEADS OF AGENCIES WHO MUST ACCOUNT FOR THE EFFECTIVE DELIVERY OF BROAD FUNCTIONS OFTEN SPEND MONEY ON PUBLIC RELATIONS TO DEFEND THEIR PERFORMANCE BECAUSE THEY CANNOT FIND CONVINCING MEASURES TO SHOW THAT THE OPERATION IS EFFECTIVE. POLICIES TO ACHIEVE EFFECTIVE, ECONOMICAL GOVERNMENT AND DEVELOPMENT OF MEANINGFUL MEASURES FOR PUBLIC GOODS ARE CONSIDERED THE BIGGEST PROBLEMS IN PUBLIC ADMINISTRATION. (GLR)