Psychology and the Economy

Question 1

economy definition

Answer 1

The economy refers to the state of a country or region in terms of the production and consumption of goods and services and the supply of money.

Question 2

Ways in which Psychology affects the economy

Answer 2

Ways in which Psychology affects the economy:
Impact on healthcare service
Impact on laws and policies
Impact on government finances Impact on employment and productivity

Question 3

social influence + the economy

Answer 3

Social influenceresearch helps us tounderstand how behaviour and attitudes can be changed (e.g.how people tend to conformto the majority and obeyauthority figures, as well as how minority influencecan be exerted). Social influence research has been used to encourage people to engage in more healthy behaviours, such as eating more healthily. The resulting change of eating more healthily means that people should be healthier in general.The economic implication for this would be reduced pressure on NHS resources andpeople takingless time of work sick, improving productivity.

Question 4

memory + the economy

Answer 4

The cognitive interviewwas developed based on psychological research into the way in which memory works. Ithashugelyimproved the amount of accurate information collected from eyewitnesses. The implication for the economy is that the amount spent on wrongful arrests/imprisonmentand wasted police time will be vastly reduced.

Question 5

attachment + the economy

Answer 5

Attachment research has come aconsiderable way since Bowlby asserted that a child can only everform a secure attachment and lasting monotropic bondwith 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 has questioned Bowlby and has shown the importance of the father. Both parents are equally capable of providing the emotional support necessary for healthy psychological development. It is now normal for householdsto have flexible working arrangements. Some mothers who earn more go to work and the father stays at home, other couples share the child care evenly. This means that modern parents are better equipped to maximize their income and contribute more effectively to the economy.

Question 6

mental health + the economy

Answer 6

Psychological research findings into psychopathology may lead to improvements in psychological health/treatment programmes which couldmean that people manage their health better and take less time off work. This would reduce costs to the economy.

‘Cutting-edge’ scientific research findings into treatments for mental health issues carried out in UK may encourage investment from overseas companies into this country which could boost the economy.

However, providing effective treatments might be a significant financial burden to an NHS service already under huge financial strain. Research might discover that new treatments are more effective than older therapies, but these new therapies could be more expensive.