Psychology and the economy

Question 1

Psychology and the economy+ examples

Answer 1

-Psychological theories are used by governments and companies in societies to improve the economy
For example:
-Psychologically healthy people are more likely to produce high quality goods and services that will contribute to the economy
-Consumption of these goods and services depends on if people are willing and able to buy them, a psychological understanding and manipulation of desire can increase demand

Question 2

Maternal deprivation

Answer 2

-Researchers such as Harlow (deprivation of monkeys), Bowlby (critical period), Ainsworth (attachment styles), and Rutter (Romanian Orphans) demonstrate how deprivation in early childhood can have negative effects on physical, emotional and intellectual development

Question 3

Influence of research into Maternal Deprivation on the economy

Answer 3

-Midwives can use their knowledge of developmental needs when giving informed advice to expectant mothers
-Hospitals have improved policies on family visiting times and physical contact between the mother and baby in the first hours of life
-Adoption agencies now prioritise quick placement of infants with a loving family

-This improves the development of children which improves the economy
-These adults are more likely to be productive individuals and are less likely to require costly mental health treatments as adults

Question 4

Social influence research (Obedience) (conformity)

Answer 4

-Researchers such as Milgram (Obedience) and Asch (Conformity) demonstrated how situational social pressure can influence human behaviour
-This is used by certain governments to control the behaviour of their citizens
-For example HMRC sent letters to people that did not pay their tax which included statistics demonstrating that the majority of people did pay their tax on time and made it clear that they were not in that majority; this project increased the taxes paid and other projects like this improve the economy as they give the government more spending power for other services

Question 5

Neurotransmitters

Answer 5

-The imbalance of neurotransmitters can lead to the development of mental health conditions such as anxiety, depression and OCD
-Drug therapies acts on neurotransmitters, reducing symptoms
-The use of cheap and effective drug therapies to reduce symptoms, reduces the strain on the NHS and increases the productivity of workers; meaning that there are more workers to pay tax