Lesson 11: Psychology and the Economy

Question 1

Ways in which psychology affects the economy

Answer 1

Impacts on:
- healthcare services
- laws and policies
- government finances
- employment and productivity

Question 2

Social influence economic impacts

Answer 2

Helps us to understand how behaviour and attitudes can be changed. Has been used to encourage people to engage in more healthy behaviours, such as bettering their diets. The resulting change means that people should be healthier in general. The economic implication is that there would be reduced pressure on NHS resources and people taking less time of work sick, improving productivity.

Question 3

Memory economic impacts

Answer 3

The cognitive interview hugely improved the amount of accurate information collected by eyewitnesses. As a result, funds spent on wrongful arrests/imprisonment and wasted police time is vastly reduced.

Question 4

Attachment economic impacts

Answer 4

Has come a long way since Bowlby asserted that a child can only ever form a secure attachment and lasting monotropic bond with its mother. At the time Bowlby was writing, childcare was seen to be the sole responsibility of the mother, preventing many women from being able to work. More recent research questioned Bowlby and has shown the importance of the father. Both parents are equally capable of providing the emotional support necessary for psychological development. As a result more women work and modern parent are better equipped to maximise their income and contribute more effectively to the economy.

Question 5

Mental healths economic impacts

Answer 5

Absence from work costs the economy £15 billion a year and a third of all absences are caused by mild to moderate mental health disorders, such as depression, anxiety, and stress.

Evidence based on effective drug therapies has been essential in reducing the cost of mental illness to the economy and returning people to work. Psychological research into psychopathology may lead to improvements in treatment so people manage their health better and take less time off work. This would reduce costs to the economy. Furthermore, it could boost individual productivity further boosting the economy.

‘Cutting edge’ scientific research into mental health treatments carried out in the UK may encourage investment from overseas companies into this country which could aid economic growth. However, providing effective treatments might impose significant financial strain on the NHS and new treatments may be more costly.