Exchange Theory is based upon the idea that individuals and groups act to maximize rewards and minimize costs. True False

This statement is True. Exchange Theory posits that human relationships and social interactions are formed based on a subjective cost-benefit analysis, where individuals seek to maximize their benefits (or rewards) and minimize their costs. The underlying premise is that people engage in social exchanges that are perceived as advantageous, and they assess the value of their relationships by comparing the rewards obtained against the costs incurred.

The theory suggests that social elements such as love, support, and companionship are viewed as rewards, whereas time, effort, and emotional strain are considered costs. This perspective highlights the rational and economic-like behavior underlying human interactions, indicating that decisions made in relationships owe significantly to the perceived balance of advantages. As such, the concept has broad implications in sociology and psychology, influencing how we understand interpersonal dynamics and social structures.