The implications of psychological research for the economy. Flashcards
Define the economy.
It is the production and consumption of goods and services
Explain the link between psychology and the Economy.
It is when psychological theories can be applied by governments and companies to improve how the economy functions.
Give examples on how Psychology can help improve the Economy.
1) A psychologically healthy and well-educated population cane be more productive, producing more and higher quality of goods and services.
2) A psychological understanding and manipulation of desire such as effective advertising can increase demands.
How has research on Maternal Deprivation helped improve the economy?
Research by Harlow (Monkeys), Bowlby and Mary Ainsworth demonstrate intellectual, emotional and physical development can be negatively affected by deprivation early in a child life.
This improves the economy as these adults are more likely to be productive adults and better adjusted to the demands of adult life.
What influence does Maternal Deprivation Research have on the economy?
1) Midwives use the psychological knowledge gained about the developmental needs of young children when giving informed advice to newly mothers.
2) Hospitals have improved their policies around family visiting hours for young children and physical contact between parents and children in the first few hours of life.
3) Adoption agencies prioritise quick placement of infants with loving families.
How has research on Social influence help improve the economy?
Researchers such as Milgram and Asch demonstrated how situational social pressures could influence an individuals behaviour.
Organisations have used these findings to change the behaviour of their citizens. For example, The nudge unit - The behavioural Insights team (BIT) is working within the UK government to apply to psychological principles.
What influence does social influence have on the economy?
1) Unions strikes, people come together to form a majority to make working conditions better. This means the quality of work is improved which as a result also improves the economy.
2) Environmental campaigns, people come together to form a majority to get companies to reduce their waste and use of non-renewable energy.
How has research on Memory help improve the economy?
Researchers such as Loftus and Palmer have shown that memory and its use in eyewitness testimony in court have serious limitations.
Police are now trained to avoid leading questions and post-event communication.
What influence does memory have on the economy?
Memory research improves the economy by reducing the cost of imprisoning people who do not belong in prison and by imprisoning people who are guilty and may otherwise go on to commit more crimes that may be costly.
How can Research into Psychopathology help improve the economy?
Research into psychopathology includes causes and treatments for disorders such as depression, OCD and phobias.
This means that people who are suffering from these disorders can take treatments and suitable therapies so that they eventually become fit enough to work. This also reduces stress on the NHS both physically and economically.
More people working means that companies expand - economy increases.
