1. Public Management Chapter 16 7E M ANAGERIAL E CONOMICS F U N D A M E N T A L S O F © 2003 South-Western/Thomson Learning M A R K H I R S C H E Y PowerPoint Presentation by Charlie Cook

2. Fundamentals of Managerial Economics 7e© 2003 South-Western/Thomson Learning16–2 Optimal Amount of a Public Good Figure 16.1

3. Fundamentals of Managerial Economics 7e© 2003 South-Western/Thomson Learning16–3 Maximization of Social Benefits from Government Programs and Public- Sector Investments Figure 16.2

4. Fundamentals of Managerial Economics 7e© 2003 South-Western/Thomson Learning16–4 High GDP Growth, Coupled with Low Unemployment and Inflation, Made for a Vibrant “New Economy” in the 1990s Figure 16.3 Note: Real GDP growth (chained 1996 dollars) and inflation (measured by the CPI-U-RS) are average annual rates from the end of the preceding year through the end of the period. Unemployment rates are monthly averages. Data for 2000 are through the third quarter for real GDP and through November for unemployment and inflation. Sources: Department of Commerce (Bureau of Economic Analysis) and Department of Labor (Bureau of Labor Statistics).

5. Fundamentals of Managerial Economics 7e© 2003 South-Western/Thomson Learning16–5 Growth in Real Household Income by Quintile, 1973–1993 and 1993–1999 Figure 16.4 Source: Department of Commerce (Bureau of the Census).

6. Fundamentals of Managerial Economics 7e© 2003 South-Western/Thomson Learning16–6 Long-Term Budget Balance Projections Differ Widely Under Various Policy Assumptions Figure 16.5 Note: Data are for fiscal years, Projections are based on policy and economic assumptions fro the June 2000 Mid-session review updated for actual economic performance through the third quarter of 2000. Source: Office of Management and Budget.

7. Fundamentals of Managerial Economics 7e© 2003 South-Western/Thomson Learning16–7 Recent Global Changes in Labor Productivity and Total Factor Productivity (1990–1995 to 1996–1999) Figure 16.6 Source: Board of Governors of the Federal Reserve System.

8. Fundamentals of Managerial Economics 7e© 2003 South-Western/Thomson Learning16–8 Average Annual Percent Change in Imports and Exports by End-Use Category (1996–2000) Figure 16.7 Note: Total includes “other,” which is not shown. Estimates for 2000 are based on data for the first three quarters. Source: Department of Commerce (Bureau of the Census).

9. Fundamentals of Managerial Economics 7e© 2003 South-Western/Thomson Learning16–9 Health Insurance Coverage of Those Under 65, by Insurance Type and Income, 1999 Figure 16.8 Source: Department of Commerce (Bureau of the Census).

10. Fundamentals of Managerial Economics 7e© 2003 South-Western/Thomson Learning16–10 Health Expenditures and Enrollment in Health Maintenance Organizations Figure 16.9 Sources: Department of Health and Human Services (Health Care Financing Administration) and Employee Benefits Research Institute.