Course syllabus


VVBF10, 7,5 credits, G2 (First Cycle)

Valid for: 2012/13
Decided by: Education Board 3
Date of Decision: 2012-04-04

General Information

Main field: Technology.
Compulsory for: IBYI2, IBYV2
Elective Compulsory for: V3
Language of instruction: The course will be given in Swedish


The aim of the course is to deepen the student's knowledge on economics on the national level. Within the area of public economics, great importance is attached to the mechanism of the determination of prices, regulated markets, and external effects like environmental effects. The aim is furthermore to increase the understanding of how the public economy works as a whole but also how various evaluation methods can be used to find the most efficient investments and measures. Another aim is to increase the knowledge on various financial and organisational solutions of an investment like tendering and contract arrangements.

The teaching form consists of lectures, PBL problems, exercises and a field study with related group assignment. Exercises and PBL problems are carried out individually under the teacher's guide. The exercises are carried out in groups of about 30 students. The field study is conducted in groups with teacher-led feedback on execution and content of the report.

Learning outcomes

Knowledge and understanding
For a passing grade the student must

For a passing grade the student must:
- be able to define, and thoroughly describe keywords like economics and business economics, market economy, planned economy, mixed economy, market failures and regulated markets.
- be able to analyse and describe how various measures affect the market
- be able to explain how effects not having a direct monetary value, can be valued
- be able to formulate goals and conflicts between goals of the society

Competences and skills
For a passing grade the student must

For a passing grade the student must:
- be able to evaluate a measure or an investment using various evaluation methods
- be able to apply, execute, and use cost benefit analysis
- be able to identify and assess the effects of a measure/investment and at the same time examine and test the valuation and its fairness.
- be able to discuss various financial solutions
- able to design and implement an evaluation plan for an action or investment


The course is divided into three blocks:
Basic theory and models of economics. Definitions and concepts
Prioritisation and evaluation methods. Price mechanisms and valuations of effects.
Cost benefit analysis - application
The base of the first part constitutes of economic theories and models. The student will learn: how various markets works, e.g. monopoly, planned economy, market economy, mixed economy; how the prices are put on various markets; how the sensitivity for price changes varies and how this in turn affect our financial means of control; how demand and supply is determined; why certain markets are regulated; the definition of external effects and how we can effect them.
In the second block, various prioritising and evaluation models are discussed. Furthermore, within this block various methods of valuation are discussed. Examples of practical application of evaluation methods are given from various areas like the environmental-, transport- and health care area as well as the industry.
The third block focus on the cost benefit analysis method and its application within the transport sector. The student will learn how to execute and apply a cost benefit analysis. Other issues discussed are e.g. the use of discount rates and the implication on long-term environmental effects, and advantages/disadvantages with the cost benefit analysis. This block also discusses various models of finance.

Examination details

Grading scale: TH
Assessment: Students are examined individually and in groups. Group examination is based on written report from field studies and group discussions. Individual exams consist of a written exam. To pass the course requires attendance at PBL session and submission of PBL report, approved report from field studies and group work, active participation in and attendance at the presentation of field study and the related group assignment, pass the exam.


The number of participants is limited to: No
The course overlaps following course/s: VVB061

Reading list

Contact and other information

Course coordinator: Lena Hiselius,
Course homepage:
Further information: The course is offered in Lund.