Psychological research and the economy | AQA A-Level Psychology Revision
- Revision Notes
- Aug 4
- 18 min read
Updated: 6 days ago
For 7182 specification, first teach in September 2025
AQA A-Level Psychology | Free Revision Notes
Estimated study time: 55 minutes
Psychological research can influence how organisations, public services and individuals use money, time and other resources. This Psychological research and the economy A-Level Psychology revision page explains how findings may contribute to changes in productivity, employment, healthcare, education and public spending. You will also learn how to apply psychological evidence to unfamiliar economic contexts and evaluate whether claims about financial benefits are justified. The key is to connect research findings to an application and then consider both its possible benefits and its costs.
Learning Objectives 🎯
By the end of this revision page, you should be able to:
Explain how psychological research may have economic implications.
Identify possible economic costs and benefits arising from psychological research.
Apply psychological findings to workplace, healthcare and public-service contexts.
Analyse the steps connecting a research finding to an economic outcome.
Evaluate whether a claim about an economic implication is supported by evidence.
Reach a balanced conclusion about the possible economic value of psychological research.
Revision Notes 📚
What does the economy mean in psychological research?
The economy concerns the production and use of resources, including:
Money.
Labour.
Time.
Goods and services.
Public and private expenditure.
Psychological research may have economic implications when its findings affect how these resources are used.
For example, research might inform:
Workplace practices.
Treatments and support services.
Educational programmes.
Public-information campaigns.
Criminal justice procedures.
Staff recruitment and training.
Policies intended to change behaviour.
An economic implication may be positive or negative. A psychological application may save resources, increase productivity or reduce demand on services, but it may also require funding, staff time, equipment and training.
What the AQA specification requires
The AQA specification requires students to understand the implications of psychological research for the economy.
This means you should be able to:
Explain a plausible economic consequence of psychological research.
Apply findings to an unfamiliar economic situation.
Recognise that applying research usually involves both costs and potential benefits.
Evaluate whether a claimed economic effect is supported by suitable evidence.
The specification does not require one fixed named example. You may therefore need to apply research-methods reasoning to a scenario provided in the examination.
How psychological research may affect the economy
Psychological research does not usually change the economy directly.
A sequence of events is normally required:
Psychologists conduct an investigation.
A finding or conclusion is produced.
The research is assessed and communicated.
An organisation or public body applies the finding.
Behaviour, performance or service use may change.
This change may create an economic cost or benefit.
For example:
Research finding → workplace intervention → change in employee behaviour → change in absence or productivity → possible economic consequence
Each step should be examined carefully. A finding does not automatically produce a successful application.
Claims should ideally be based on research that has undergone scientific scrutiny.
Possible routes from research to economic effects
Area | Possible psychological application | Possible economic implication |
Workplace | Changes to workload, working conditions or staff support | Changes in absence, staff turnover or productivity |
Healthcare | Use of an effective psychological treatment | Treatment costs, service use and ability to return to work or education |
Education | Changes to learning, assessment or support practices | Training costs, use of teaching resources and future educational outcomes |
Criminal justice | Changes to interviewing, rehabilitation or offender support | Staff training, programme costs and use of police, court or prison resources |
Consumer behaviour | Changes to advertising or product presentation | Sales, marketing costs and consumer spending |
Public policy | Campaigns intended to change behaviour | Campaign costs and possible changes in use of public services |
These are possible routes, not guaranteed results. Each claim must be supported by evidence from the relevant research and application.
Economic costs of conducting research
Psychological research itself requires resources.
Possible costs include:
Paying researchers and support staff.
Recruiting participants.
Providing participant expenses or incentives.
Purchasing or maintaining equipment.
Hiring research locations.
Developing questionnaires, tests or interventions.
Storing and analysing data.
Obtaining appropriate training.
Monitoring ethical and practical procedures.
Publishing and communicating findings.
These costs do not mean that the research lacks value. They should be considered alongside the possible benefits of the knowledge produced.
Economic costs of applying research
Even when a finding appears useful, putting it into practice may be expensive.
Implementation may require:
Training staff.
Employing additional specialists.
Purchasing materials or technology.
Changing workplace procedures.
Providing treatment over an extended period.
Monitoring whether the programme is working.
Replacing existing systems.
Allowing staff time away from their usual duties.
A programme could produce positive psychological outcomes without saving money immediately.
For example, a workplace support programme may improve employee wellbeing but require substantial spending during its first year.
Economic benefits of applying research
Psychological research may produce an economic benefit if its application leads to more effective use of resources.
Possible benefits may include:
Increased productivity.
Reduced absence from work or education.
Reduced staff turnover.
More effective training.
More efficient delivery of services.
Reduced need for repeated treatment.
Earlier return to work or education.
Better targeting of resources.
Prevention of problems that would be more expensive to address later.
These are potential outcomes. They should not be presented as certain without evidence.
Direct and indirect economic implications
Economic consequences may occur in different ways.
Direct effects
A direct economic effect is closely connected to the application.
For example:
The cost of employing a therapist.
The cost of training staff.
The amount spent on a public campaign.
The price of specialist equipment.
A reduction in the number of appointments required.
Indirect effects
An indirect effect occurs through a further change in behaviour or circumstances.
For example:
Improved psychological wellbeing may contribute to better attendance.
Better attendance may increase workplace output.
More effective support may reduce the need for another service.
Improved retention may reduce the cost of recruiting replacement staff.
Indirect claims usually require more assumptions, so they should be evaluated particularly carefully.
Immediate and long-term implications
Economic effects may also differ over time.
Immediate effects
These may include:
Research costs.
Staff training.
Programme development.
Equipment purchases.
Time spent introducing a new procedure.
Long-term effects
These may include:
Changes in productivity.
Reduced service use.
Improved staff retention.
Prevention of later problems.
The continuing cost of maintaining an intervention.
A programme may cost more than it saves initially but produce benefits later. Alternatively, an early positive effect may disappear over time.
The time period used in an economic claim must therefore be stated clearly.
Research into workplace behaviour
Psychological research may be applied by employers to:
Understand workplace stress.
Change workload or levels of employee control.
Improve staff support.
Design training.
Improve communication.
Select or organise working practices.
For example, research into workload and control may inform changes intended to reduce workplace stress. You can connect this to psychological explanations of pressure at work.
Possible economic implications could include:
The cost of redesigning work.
The cost of staff training.
Changes in absence.
Changes in employee turnover.
Changes in productivity.
Time needed to implement the new procedure.
A complete answer should avoid stating only that the research “helps workers”. It should explain how the application could affect the use of economic resources.
Example: workplace intervention
A psychologist finds an association between employees’ perceived control over their work and self-reported stress.
A company introduces more flexible scheduling.
Possible economic costs include:
Management time spent redesigning schedules.
Training for supervisors.
New scheduling software.
Temporary disruption while the system is introduced.
Possible economic benefits might include:
Reduced absence.
Improved staff retention.
Greater productivity.
Lower recruitment costs.
However, the original finding was an association. It does not prove that increasing control will cause all of these outcomes.
Before making a strong economic claim, the company would need evidence that the intervention itself produces the predicted changes.
Healthcare and treatment research
Research into psychological treatments may influence:
Which treatments are offered.
How long treatment lasts.
Which professionals provide it.
Whether treatment occurs individually or in groups.
How services allocate staff and appointments.
Possible economic costs include:
Therapist salaries.
Training.
Treatment facilities.
Medication or equipment where applicable.
Monitoring progress.
Continuing support.
Possible benefits might include:
More effective use of appointments.
Reduced need for further treatment.
Earlier return to employment or education.
Reduced demand on other services.
The most effective treatment psychologically is not automatically the least expensive. Equally, the cheapest treatment is not automatically the most appropriate.
Economic evaluation should be considered alongside effectiveness, appropriateness and ethical treatment.
Comparing treatment costs responsibly
Suppose treatment A is cheaper per session than treatment B.
It would be incorrect to conclude immediately that treatment A has the greater economic benefit.
Researchers would also need to consider:
How many sessions are required.
How many participants complete treatment.
Whether improvements continue.
Whether further treatment is required.
Whether the treatments are suitable for comparable participants.
Whether adverse effects create additional costs.
A useful economic comparison therefore requires more than a single price.
Education and psychological research
Psychological research may inform:
Teaching strategies.
Revision activities.
Assessment procedures.
Support for students.
Classroom organisation.
Staff training.
Economic costs may include:
Teacher-training time.
New materials.
Technology.
Additional staff support.
Time spent replacing existing procedures.
Possible benefits may include:
More effective use of teaching time.
Improved attendance.
Reduced need for repeated support.
Better targeting of educational resources.
However, educational outcomes are affected by many variables. A change in performance should not automatically be attributed to one psychological programme.
Criminal justice and public services
Psychological research may influence procedures used by:
Police.
Courts.
Prisons.
Probation services.
Rehabilitation programmes.
Support organisations.
Applications could require:
Specialist staff.
Training.
Interview facilities.
Programme materials.
Longer or shorter procedures.
Monitoring of outcomes.
Possible economic consequences may include changes in:
Staff time.
Use of court or prison resources.
Cost of rehabilitation.
Demand for future services.
Resources used to investigate or manage offending.
Claims about savings should be supported by evidence that the psychological application produces the expected behavioural change.
For example, the cost of a programme cannot be justified solely by assuming that every participant will benefit.
Public-information campaigns
Psychological findings may be used to design campaigns intended to influence behaviour.
A campaign may involve:
Advertising.
Social media.
Printed materials.
Staff training.
Community events.
Evaluation of behaviour change.
The campaign itself costs money. Its economic value depends on whether it changes behaviour and whether that change affects the use of resources.
A campaign may raise awareness without producing the intended behavioural outcome. Awareness alone should not be treated as proof of economic benefit.
Economic implications for individuals
Psychological research can also have economic consequences for individuals.
Possible examples include changes in:
Ability to work.
Time away from employment.
Training opportunities.
Spending decisions.
Access to treatment or support.
Costs of travel or participation.
Ability to continue education.
An application may benefit an organisation while creating costs for individuals, or benefit individuals while requiring greater public expenditure.
Economic implications should therefore consider who pays and who benefits.
Economic implications for organisations
An organisation may consider whether a psychological application affects:
Staff costs.
Recruitment.
Training.
Absence.
Productivity.
Customer behaviour.
Service efficiency.
Equipment and facilities.
Legal or ethical responsibilities.
A claim such as “the intervention will improve profits” is too vague.
A stronger claim explains the proposed route:
If the intervention reduces staff turnover, the organisation may spend less on recruiting and training replacement employees.
The word “may” is important because the outcome depends on whether the intervention is effective in that organisation.
Economic implications for government and public services
Public bodies may use psychological research when deciding how to allocate limited resources.
Research might influence spending on:
Health services.
Education.
Crime prevention.
Rehabilitation.
Employment support.
Public campaigns.
A programme that costs one department money might reduce demand elsewhere.
For example, providing psychological support may increase spending by one service but potentially reduce later use of another service.
This means economic implications may need to be considered across more than one organisation.
Applying psychological findings to an economic context
A strong application should contain a clear chain of reasoning.
Step 1: Identify the psychological finding
State what the research suggests.
For example:
Employees reporting lower control also reported higher workplace stress.
Step 2: Identify the possible application
Explain what an organisation might change.
The organisation could increase employee control over scheduling.
Step 3: Identify the behavioural or psychological outcome
State what the application is intended to affect.
The change is intended to reduce employee stress.
Step 4: Identify the possible economic consequence
Connect the outcome to resources.
Reduced stress could be associated with less absence and lower costs of covering missed work.
Step 5: Evaluate the claim
Consider whether the evidence justifies the conclusion.
Because the original evidence was correlational, it does not establish that increasing control will cause lower stress or reduce absence.
This final step is essential for a high-quality answer.
The finding-to-economy chain
Stage | Question to ask |
Research finding | What did the investigation actually show? |
Application | How would the finding be put into practice? |
Psychological effect | What behaviour or experience is expected to change? |
Economic effect | How could this alter money, labour, time or service use? |
Evidence | Is each step supported by suitable data? |
Evaluation | Are there alternative explanations, costs or limitations? |
If one link in the chain is weak, the economic claim becomes less convincing.
Economic implications and correlations
A correlation identifies a relationship between co-variables. It does not establish that one variable caused the other.
Suppose researchers find a negative correlation between workplace stress and productivity.
This does not prove that:
Stress caused lower productivity.
Reducing stress will increase productivity.
A stress-management programme will save money.
Productivity could affect stress, or a third variable could influence both.
Economic applications based on relationships between co-variables should therefore avoid unsupported causal claims.
Economic implications and experimental evidence
A controlled experiment may provide stronger evidence that an intervention caused a change.
For example, researchers could compare:
An experimental group receiving a workplace programme.
A control group continuing with the usual procedure.
If the groups are treated comparably and important extraneous variables are controlled, differences in outcomes may be more confidently linked to the intervention.
However, the economic value would still depend on:
The cost of the programme.
The size of the effect.
Whether the effect lasts.
Whether the findings generalise.
Whether the programme works when used outside the research setting.
Evaluating evidence quality
Before accepting an economic claim, consider the quality of the research.
Important questions include:
Was the sample appropriate?
Were variables operationalised clearly?
Were extraneous variables controlled?
Was there a suitable comparison or control group?
Were demand characteristics reduced?
Were measurements reliable?
Did the study measure the intended outcome?
Were findings analysed appropriately?
Were conclusions supported by the results?
Claims based on consistent measurements and procedures are generally more convincing than claims based on unstable findings.
Researchers must also consider whether the investigation measured what it intended to measure.
Generalisation and economic claims
A finding from one group may not apply to every organisation or population.
For example, an intervention tested with:
Volunteers.
Employees from one company.
Students.
A small clinical sample.
may not produce the same result in a different population.
Before an organisation invests resources, it should consider whether the original participants are sufficiently similar to the people who will receive the application.
A result that works in a controlled study may also be less effective when introduced on a larger scale.
The difference between statistical and economic importance
A research finding may show a reliable difference without producing a large economic effect.
For example:
A programme may improve task performance by a very small amount.
The improvement may be too small to justify expensive training.
A difference may matter statistically but have little effect on everyday productivity.
Alternatively, a modest change across a very large population could have a substantial economic effect.
Economic importance therefore depends on:
The size of the change.
The number of people affected.
The costs of implementation.
The length of time the effect continues.
The practical consequences of the change.
Implementation quality
A successful research procedure may not produce the same outcome when applied in everyday settings.
Implementation may differ because:
Staff receive less training.
The procedure is shortened.
Materials are changed.
Participation is inconsistent.
The organisation does not follow the original method.
The real setting contains more uncontrolled variables.
An economic claim based on the original study may therefore overestimate what will happen in practice.
Costs may be transferred rather than removed
A reported saving for one organisation may create a cost elsewhere.
For example:
A shorter service may save one provider money but increase pressure on families.
Greater employee flexibility may require additional management time.
Reduced spending by one public service may increase demand for another.
A complete economic evaluation should consider the wider distribution of costs and benefits.
Economic value is not the only consideration
A psychological application should not be judged only by whether it saves money.
Researchers and decision-makers should also consider:
Effectiveness.
Participant wellbeing.
Ethical acceptability.
Fairness.
Accessibility.
Quality of life.
Individual differences.
Possible unintended effects.
A procedure could be economically inexpensive but psychologically ineffective or ethically unacceptable.
Similarly, a costly intervention may still be considered worthwhile if it produces important benefits.
The economic implications of research should therefore be considered alongside ethical responsibilities in psychological research.
Evaluating a claim about economic benefits
Consider the claim:
“This psychological intervention will save the company money.”
A strong evaluation should ask:
What research supports the intervention?
Was the research reliable and valid?
Did it show causation or only association?
Is the company similar to the original research setting?
What will implementation cost?
How large is the expected effect?
How long will the effect last?
Are there ongoing costs?
Are savings measured directly or assumed?
Are there possible unintended consequences?
Who receives the benefit?
Who bears the cost?
Without answers to these questions, the claim may be premature.
Evaluating a hypothetical workplace claim
A company introduces a wellbeing programme after a study reports that participants experienced lower self-reported stress.
The company claims that the programme will increase profits.
This claim may be weak because:
Lower self-reported stress does not necessarily mean higher productivity.
Productivity was not measured.
The programme may be expensive.
The study may have used a different population.
The effect may not continue over time.
Participants may have reported lower stress because they knew they received the programme.
Other workplace variables may influence profit.
A better conclusion would be:
The programme may have economic benefits if the reduction in stress leads to improved attendance or productivity and if these benefits exceed the costs of implementation. Further evidence would be needed.
Interpreting economic data
Economic claims may be supported using data such as:
Programme cost.
Staff-training time.
Number of absence days.
Number of appointments.
Staff turnover.
Task output.
Number of people using a service.
Cost per participant.
You should examine what the figures actually show.
For example, a reduction in absence following an intervention does not automatically prove that the intervention caused the reduction. Other changes may have occurred at the same time.
Worked hypothetical comparison
A company introduces a staff-support programme.
Measure | Value |
Cost of programme | £12,000 |
Absence before programme | 240 days |
Absence after programme | 180 days |
Estimated cost of one absence day | £90 |
The recorded reduction is:
240−180=60 days240 - 180 = 60 \text{ days}240−180=60 days
The estimated saving associated with the reduction is:
60×£90=£5,40060 \times £90 = £5,40060×£90=£5,400
During this period, the estimated saving is lower than the programme cost:
£12,000−£5,400=£6,600£12,000 - £5,400 = £6,600£12,000−£5,400=£6,600
The programme did not produce a net saving during the period using these figures alone.
However, the conclusion should remain cautious because:
The programme may produce later benefits.
Other economic outcomes were not measured.
Absence may have changed for other reasons.
Psychological or ethical benefits may still exist.
The estimated cost per absence day may be incomplete.
This example shows why economic claims should be based on the full pattern of evidence rather than one positive outcome.
Research quality and economic decisions
Economic decisions may affect many people and involve substantial resources.
It is therefore important that findings are:
Reported clearly.
Examined critically.
Replicated where possible.
Applied to suitable populations.
Monitored after implementation.
Clear communication of the method, results and conclusions allows decision-makers to judge whether an economic claim is justified.
Monitoring an application
Economic evaluation should continue after a psychological application has been introduced.
Researchers or organisations may measure:
Whether the programme was delivered as planned.
Whether the intended psychological outcome changed.
Whether the change lasted.
Whether predicted savings occurred.
Whether unexpected costs emerged.
Whether some groups benefited more than others.
An intervention that worked in the original research should not be assumed to work indefinitely or in every setting.
Positive, negative and uncertain implications
Economic implications can be organised into three broad conclusions.
Positive implication
Evidence suggests that the application produces benefits that justify its cost.
Negative implication
Evidence suggests that the application uses more resources than it saves or creates additional economic problems.
Uncertain implication
The available evidence is insufficient to determine the overall economic effect.
“Uncertain” is often the most accurate conclusion where costs, long-term outcomes or causal evidence are missing.
Writing an economic application answer
A strong paragraph might follow this structure:
Psychological research into workplace stress may encourage employers to change workload or employee control. Introducing these changes could require management time and staff training, creating an immediate cost. If the change reduces absence or staff turnover, the employer may later save money. However, the claim depends on evidence that the intervention causes these outcomes and that the savings exceed the cost of implementation.
This answer:
Identifies the psychological area.
Describes an application.
Explains a cost.
Explains a possible benefit.
Evaluates the strength of the claim.
Weak and strong economic explanations
Weak response
Psychology helps the economy because happy workers work better.
Problems with this answer include:
“Happy” is not operationalised.
No research finding is identified.
The route to an economic effect is unclear.
The claim is presented as certain.
No costs or limitations are considered.
Stronger response
Research into workplace stress may inform changes to workload or employee control. If these changes reduce absence, an employer may spend less on covering missed work. However, introducing the changes may require training and management time, and evidence would be needed to show that the intervention caused the reduction in absence.
Psychological research and the economy A-Level Psychology revision: command words
Explain
Show how psychological research could lead to an economic consequence.
Apply
Use details from the scenario rather than giving a general statement.
Analyse
Break the claim into stages and examine the evidence linking each stage.
Evaluate
Consider strengths, limitations, costs, benefits and alternative explanations.
Discuss
Present a balanced account and reach a reasoned conclusion.
A checklist for evaluating economic claims
When evaluating a claim, ask:
Finding: What did the research actually show?
Causation: Can the result support a causal conclusion?
Application: How will the finding be used?
Outcome: What behaviour or experience is expected to change?
Measurement: How will that change be measured?
Cost: What resources are required?
Benefit: What economic outcome is predicted?
Timescale: When should the benefit occur?
Generalisability: Will the finding apply in this setting?
Evidence quality: Is the research reliable and valid?
Alternatives: What else might explain the outcome?
Ethics: Are participants and affected groups treated appropriately?
Conclusion: Is the economic claim justified, possible or uncertain?
Key Words 🔑
Key word | Student-friendly definition | How it may be used in an exam |
Economic implication | A possible effect on the use of money, labour, time, goods or services. | Explain how a psychological finding could affect an organisation or public service. |
Economy | The system through which resources, work, goods and services are produced and used. | Provide the wider context for applying psychological research. |
Application | The use of a psychological finding in a practical setting. | Explain how research could influence workplace or public-service procedures. |
Economic cost | The money, time, labour or other resources required by research or its application. | Identify the resources needed to introduce a programme. |
Economic benefit | A positive effect on the use or availability of economic resources. | Explain a possible saving or improvement in productivity. |
Productivity | The amount of useful output produced using available resources. | Apply workplace research to an economic context. |
Implementation | Putting a research-based procedure or programme into practice. | Explain why findings may not produce an immediate economic effect. |
Evidence | Information used to support or challenge a conclusion. | Evaluate whether an economic claim is justified. |
Causation | A relationship in which a change in one variable produces a change in another. | Question economic claims based only on correlations. |
Generalisation | Applying findings from a sample to a wider population or setting. | Evaluate whether research will apply to another organisation. |
Reliability | The consistency of a method, measurement or finding. | Judge whether an economic decision is based on dependable evidence. |
Validity | The extent to which research measures what it intends to measure and supports its conclusions. | Evaluate whether the evidence justifies the claimed application. |
Control group | A comparison group that does not receive the experimental treatment being investigated. | Explain how researchers could assess whether an intervention caused an outcome. |
Long-term effect | A consequence that continues or appears over an extended period. | Evaluate claims where immediate costs and later benefits differ. |
Common Mistakes ⚠️
Mistake: Assuming that any useful psychological finding automatically benefits the economy.
Why this is incorrect:The finding must be applied successfully before it can affect the use of resources.
How to improve:Explain the full chain from finding to application, behavioural outcome and economic consequence.
Mistake: Discussing only financial savings.
Why this is incorrect:Economic implications may also involve labour, time, productivity and use of services.
How to improve:Consider a wider range of resources while keeping the explanation relevant to the scenario.
Mistake: Ignoring the cost of implementation.
Why this is incorrect:Training, staff time, equipment and monitoring may reduce or outweigh any saving.
How to improve:Compare likely benefits with both immediate and continuing costs.
Mistake: Treating a correlation as proof of an economic benefit.
Why this is incorrect:A relationship between two variables does not show that changing one will cause a change in the other.
How to improve:Identify possible alternative explanations and state that causal evidence is required.
Mistake: Claiming that a statistically supported finding must be economically important.
Why this is incorrect:The change may be too small to justify the cost of applying it.
How to improve:Consider the size, practical effect and cost of the change.
Mistake: Assuming that research findings will generalise to every organisation.
Why this is incorrect:Different populations and settings may respond differently.
How to improve:Compare the original sample and context with the proposed application.
Mistake: Giving only a social or psychological benefit.
Why this is incorrect:A statement such as “the programme improves wellbeing” does not yet explain an economic implication.
How to improve:Connect the outcome to a resource, such as attendance, service use or staff retention.
Mistake: Claiming that the cheapest option is automatically the best.
Why this is incorrect:A cheaper procedure may be ineffective, inappropriate or ethically unacceptable.
How to improve:Consider effectiveness and ethical quality alongside cost.
Mistake: Presenting an estimated saving as a guaranteed saving.
Why this is incorrect:Estimates depend on assumptions about causation, implementation and future outcomes.
How to improve:Use cautious language and explain the evidence required to support the prediction.
Exam-Style Questions ✍️
Question 1
What is meant by an economic implication of psychological research? (2 marks)
Question 2
State one economic cost involved in applying psychological research. (1 mark)
Question 3
Explain one way in which psychological research into workplace behaviour might affect the economy. (3 marks)
Question 4
A company introduces a psychological programme intended to reduce employee stress.
Explain one possible economic cost and one possible economic benefit of the programme. (4 marks)
Question 5
Researchers find a negative correlation between employee stress scores and productivity.
A manager concludes that reducing stress will definitely increase the company’s profits.
Explain one problem with the manager’s conclusion. (3 marks)
Question 6
A support programme costs an organisation £12,000. During the following year, employee absence falls from 240 days to 180 days. The organisation estimates that each absence day costs £90.
Calculate:
The estimated saving associated with the reduction in absence.
The difference between this saving and the cost of the programme.
Show your working. (4 marks)
Question 7
A psychological treatment is less expensive per session than an alternative treatment. A health service concludes that it must therefore have the greater economic benefit.
Explain two additional pieces of information that would be needed before this conclusion could be justified. (4 marks)
Question 8
A college introduces a revision programme after a small study found that students using it achieved higher scores. Participants in the study had volunteered and selected whether they used the programme.
Explain two reasons why the college should be cautious when predicting an economic benefit from the programme. (6 marks)
Question 9
A public organisation states:
“The psychological intervention reduced self-reported stress, so it will reduce service costs.”
Evaluate this claim. (6 marks)
Question 10
A large employer is considering introducing a psychological programme intended to improve employee wellbeing and productivity.
Explain how the employer could evaluate the possible economic implications of the programme. In your answer, refer to:
The quality of the psychological evidence
The cost of implementation
Measurement of outcomes
Alternative explanations
Short-term and long-term effects
(8 marks)
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