Exchange theory is a theory explaining affiliation among individuals due to spatial/geographical proximity. True False

The statement is False. Exchange theory primarily focuses on the social behavior of individuals in relationships based on the exchange of resources, both tangible and intangible. It posits that individuals seek to maximize rewards and minimize costs in their relationships, which influences their decision to affiliate or interact with others.

While geographical proximity can play a role in facilitating relationships, it is not the central premise of exchange theory. Instead, this theory emphasizes the perceived costs and benefits that individuals experience in their interactions, leading to the formation and maintenance of relationships. Thus, the affiliation among individuals is more accurately explained by the potential for exchanges of value rather than merely by spatial or geographical factors.