L12: Psychology And The Economy

Question 1

What is the economy?

Answer 1

The state of a country in terms of production and consumption of goods and services and the supply of money

Question 2

What ways does psychology affect the economy?

Answer 2

• Healthcare services
• Laws and Policies
• Government Finances
• Employment and Productivity

Question 3

How does Social Influence affect the economy?

Answer 3

• Helps to understand how behaviours/attitudes can be changed
• Used to encourage people to engage in healthy behaviours
• Eating more healthy = less pressure on NHS resources + less sick time

Question 4

How does Memory affect the economy?

Answer 4

• Cognitive Interview improves accurate info collected

- Less money will be spent on wrongful arrests + wasted time will be reduced

Question 5

How does Attachment affect the economy?

Answer 5

• Shows the importance of the father as both can provide the emotional support for healthy psychological development
• Mothers can work, and families have a flexible household
• Modern Parents maximise their income and contribute more effectively to the economy

Question 6

How does Mental Health affect the economy?

Answer 6

• Absence from work costs the economy 15 billion a year, and a third of all absences are due to mental health
• Research shows drug therapies are effective at lowering negative mental health symptoms, more research is done to better help people with mental health issues, which ultimately boosts the economy
• Encourages foreign investment for treatment development
• Could put more financial strain in NHS as new treatments may be more expensive