The report provides additional amplification for the concepts, purposes, techniques, and procedures of economic analysis. It also focuses on and discusses potential difficulties one is likely to encounter in doing an economic analysis. The key elements of the process are discussed in detail: (1) establishing and defining objectives, (2) formulating assumptions, (3) determining and evaluating alternatives, (4) determining costs and benefits, (5) comparing costs and benefits of all alternatives, and (6) determining the sensitivity of major uncertainties. Opportunities for improvements in productivity are described as: improvement in management efficiency, adoption of advanced educational technology, reduction in cost resources, and reorganization to capture scale economics. The report contains a 14-item reference list and a three-page glossary. Appended is a 12-page section entitled "Cost Model: Discussion, Assumptions, and Limitations." (Author/MS)