psychology on the economy

• how does psychology link to the economy ?

  • production, distribution, consumption of good, services. +
• how does psychology link to the economy ?

  contribute to economic prosperity + impact it
• what are the BPS responsible for ?

  the development , promotion + application psychology for the public good
• what are the 3 impacts on economy ?

  1. availability heuristic, the framing effect and behaviourist insight team
• what is the availability heuristic ?

  mental shortcut, helps make fast assessments based on the information you are given. e.g brands and products , you buy them because they are trusted
• what is the framing effect ?

  decisions alter due to whether they are presented as a loss or a gain
• what is the behavioural insight team ?

  analyse behaviour to adjust or change. e.g increase organ donations through opting out rather than in
• what are the implications of psychology on the economy ?

  clinical, occupational, health and development
• what is clinical psychology ?

  dealing with mental health issues, lose economic activity due to days off of work, by understanding disorders treatments such as drugs or CBT are used to get people back to work
• what is occupational psychoogy?

  big changes in the work place. stress management programmes- reduce days off work, research into biorhythms-way shift patterns are organised to increase productivity,managaing Human Resources-ensure right people are emploted
• what is health psychology?


  use there's and research to effect behaviour change leading to improved health so less demand on health care
• what is development psychology ?

  research by bowl by led to highlighting the importance of early attachment in later life. changes adoption age act to reduce maternal deprivation