A Major Weakness of Social-Exchange Theory Is That It

question 106

Multiple Choice

A major weakness of social-exchange theory is that it

• A) is impossible to test experimentally.
• B) fails to account for the reciprocal exchange of favours.
• C) easily degenerates into explaining-by-naming.
• D) ignores the role of internal self-rewards in motivating altruism.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Long-run Supply Curve

A graphical representation of the quantities of goods and services that producers are willing to offer for sale at different prices in the long run, when all inputs can be varied.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as production volume changes.

Break-even Point

The point at which total costs and total revenues are equal, meaning a business or project is neither making a profit nor a loss.