Psychology in the economy

Question 1

Psychology can have implications for the economy. How?

Answer 1

• psychology creates practical applications used in everyday life for the betterment of society
• thisoccurs through conducting research that allows psychology to form practical applications- research contributes to the economy in a substantial way e.g. development of effetcive therapies

Question 2

Economic implications- depression/OCD

Answer 2

• people suffering from these conditions which aren’t being treated may need to take more days off work than those who are receiving treatment
• treatments for mental health disorders come about from psychological research e.g. CBT, antidepressents, and can help people continue a normal lofestyle, such as going to work
• less time of work= better for the economy
• effective therapies save huge savings as people can contribute to society

Question 3

AO3- less money on health service

Answer 3

As well as contributing to the economy by producing a better functioning workforce, psychological research also cuts down on costs to the health service and policing, the judiciary system, the prison service etc. psychologically healthy people are unlikely to incur costs upon these institutions

Question 4

AO3- ethical considerations

Answer 4

Psychologists need to be aware of the ethical considerations come before profit and that psychology should not be used to exploit people

Question 5

AO3- agentic state

Answer 5

Psychologists must also take care not to become divorced from the consequences of their research by being in the agentic state and not taking responsibility for their actions. E.g. conducting research on drugs that is then misused by profiteering drug companies