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PSYCHOLOGY IS RELATED TO MENTAL/INNER MIND REACTIONS THAT A HUMAN BEING IS AKINED TO.PHILOSOPHY REFERS TO THE LOGIC/ ANALYTICAL/JUDICIOUS ACTION OF A HUMAN BEING ALSO REFERRING TO BELIEVE IN SUPERNATURAL OBJECTIVES/RELIGION.

Economics is a science, which is constantly progressing and interacting with other sciences. Studies in the economics literature discuss how people display a behavior or an attitude in the economic decision- making progress. Psychology is a science which explains the behavior of people and it cannot be ignored that psychology has a profound effect on economics. Human psychology and behaviours show complex structures, stereotyping people as indicating homogeneous behavior is criticized by many academics and researchers.

Economic psychology is a branch of applied psychology defined by Stephen Lea and co-authors as “the study of how individuals affect the economy and how the economy affects individuals”. One way that individuals influence the economy is by their expectations: when expectations are positive people are more likely to spend and borrow, but when negative they are more inclined to save. For those managing the economy, it is therefore important to understand and predict people’s expectations and perceptions of, for example, inflation.

Understanding how the economy affects individuals and households is equally important. For example, the burden of high-value loans, in relation to household income, is a major problem for too many these days, and the economic environment has a significant impact on borrowing behaviour. Easy access to credit has intensified debt problems for some, while exclusion from the mainstream credit market has left others with only high-cost credit options. Although research to date has informed these issues, more work is needed to resolve them.

Although the discipline of Economics and Psychology in Europe originally grew out of an emphasis on consumer behaviour in marketing, it has since expanded its horizons to focus on human behaviour with links to more macro-economic issues such as saving and credit, income and inflation, tax-paying and tax-avoidance, etc. It is concerned with issues of choice and decision-making.  Economic psychologists are also interested in such diverse area as environmental issues, token economies, experimental gaming, and time preferences.  Such diversity of subjects makes Economic Psychology an exciting and challenging interdisciplinary research field.

The integration of economics and psychology has created a vibrant and fruitful emerging field of study.  Economics and Psychology take a broad view of the interface between these two disciplines, going beyond the usual focus on "behavioural economics."  The influence of psychology on economics has been responsible for a view of human behavior that calls into question the assumption of complete rationality (and raises the possibility of altruistic acts), the acceptance of experiments as a valid method of economic research, and the idea that utility or well-being can be measured.  Taken together, the essays in Economics and Psychology offer an assessment of where this new interdisciplinary field stands and what directions are most promising for future research, providing a useful guide for economists, psychologists, and social scientists.

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The Scientific Method

Psychologists use the scientific method to conduct their research. The ScientificMethod is a standardized way of making observations, gathering data, forming theories, testing predictions, and interpreting results.

Researchers make observations in order to describe and measure behaviour. After observing certain events repeatedly, researchers come up with a theory that explains these observations. A Theory is an explanation that organizes separate pieces of information in a coherent way. Researchers generally develop a theory only after they have collected a lot of evidence and made sure their research results can be reproduced by others.

Making Research Scientific

Psychological research, like research in other fields, must meet certain criteria in order to be considered scientific. Research must be:

• Replicable
• Falsifiable
• Precise
• Parsimonious

Research Must Be Replicable

Research is Replicable when others can repeat it and get the same results. When psychologists report what they have found through their research, they also describe in detail how they made their discoveries. This way, other psychologists can repeat the research to see if they can replicate the findings.

After psychologists do their research and make sure it’s replicable, they develop a theory and translate the theory into a precise hypothesis. A Hypothesis is a testable prediction of what will happen given a certain set of conditions. Psychologists test a hypothesis by using a specific research method, such as Naturalistic Observation, a Case Study, a Survey, or an Experiment. If the test does not confirm the hypothesis, the psychologist revises or rejects the original theory.

A Good Theory

A good theory must do two things: organize many observations in a logical way and allow researchers to come up with clear predictions to check the theory.

Research Must Be Falsifiable

A good theory or hypothesis also must be Falsifiable, which means that it must be stated in a way that makes it possible to reject it. In other words, we have to be able to prove a theory or hypothesis wrong. Theories and hypotheses need to be falsifiable because all researchers can succumb to the confirmation bias. Researchers who display Confirmation Bias look for and accept evidence that supports what they want to believe and ignore or reject evidence that refutes their beliefs.

Example: Some people theorize that the Loch Ness Monster not only exists but has become intelligent enough to elude detection by hiding in undiscovered, undetectable, underwater caves. This theory is not falsifiable. Researchers can never find these undiscovered caves or the monster that supposedly hides in them, and they have no way to prove this theory wrong.

Research Must Be Precise

By stating hypotheses precisely, psychologists ensure that they can replicate their own and others’ research. To make hypotheses more precise, psychologists use operational definitions to define the variables they study. Operational Definitions state exactly how a variable will be measured.

Example: A psychologist conducts an experiment to find out whether toddlers are happier in warm weather or cool weather. She needs to have an operational definition of happiness so that she can measure precisely how happy the toddlers are. She might operationally define happiness as “the number of smiles per hour.”

Business Psychology is an applied science that investigates how to make people and organisations more effective. It uses social science research methods to study people, workplaces and organisations in order to better align their multiple and sometimes competing for needs.

The main difference between psychology and sociology is the subject matter. Psychology has a greater focus on the individual-the mental processes and behaviours. Sociology on the other hand is concerned with social systems as a whole. Psychology studies the mind, emotions, behaviour, memory, intelligence, trauma and so on. Sociology explores broader topics like economics and consumerism, education, inequalities, social change etc. Psychology has a more individualistic approach while sociology has a broader, societal scope.

This is a difficult question to answer since there exist a lot of variables that would determine the salary. Overall, corporate jobs result in Greater earnings than government jobs. Keeping that in mind, it could be said that the field of psychology called Organisational Behaviour would be ideal if making money is the goal. At the same time, even counselling or clinical psychology in a corporate setting should do the same. Many consultants who work with MNCs and other organisations will also receive a high salary.

Sociology and Psychology are interdependent and interrelated. Psychology is the study of human mind and behaviour. It is concerned with studying the mental processes in order to predict, control and alter them. Sociology, on the other hand, is the study of society. It studies social relationships. Knowledge of the human psychology is required in order to understand the inter-relations and activities of humans and many truths of psychology will remain unintelligible without a comprehensive idea about social relations. Psychology thus studies individuals and sociology studies those individuals in a social context. The relationship between the two fields manifests beautifully in the form of social psychology.

Sociology is not a compulsory prequisite for studying psychology in general, but as the fields are connected it will be helpful to take up sociology along with psychology, especially if one wants to pursue the field of social psychology in the long run.

Psychology is the study of behaviour and cognitive abilities whereas social work is working for the society, Now, Psychologists or Counselors do social work but psychology in itself is a field of science