Public sector economic analysis differs from private sector analysis in that the former assumes continuous functions and very small departures from existing conditions while the latter is generally concerned with large discrete either-or decisions. This paper (1) defines an analytic measure that relates effectiveness and cost so that the contributions of system elements to total system effectiveness and total system cost may be appraised, (2) shows how this measure has been applied to health and physical education programs in a school district, and (3) evaluates the measure by highlighting its potential usefulness and limitations. (Reproductions may be poor because of low contrast level of print.) (Author/LLR)