Psychology and the economy

• What does it mean by Economy?

  The state of a country in terms of the production and consumption of goods and services and the supply of money.
• What are the 3 examples of how psychology has affected the economy?

  • Attachment
  • Psychopathology
  • Memory
• How does Attachment affect the economy?

  Bowlby’s research suggests that babies need constant care from the mother for healthy development – this leads to stay-at-home mothering = negatively impacts the economy.
• How does Psychopathology affect the economy?

  CBT is a more expensive treatment than drugs, but it is long-lasting and means people are less likely to relapse (e.g. depression), which increases the chance of people staying in work = positively impacts the economy.
• How does Memory affect the economy?

  Cognitive interviews require a lot of training, which uses a lot of time and money = negatively impacts the economy. However, if CI is successful, time and money would be saved in the long run (e.g. less time at police station, easier court cases) = positively impacts the economy.