____ holds that social interaction involves trade in valued resources.

A) Rational choice theory
B) Ethnomethodology
C) Sociobiology
D) Conflict theory
E) Exchange theory

The concept of trade in valued resources is a critical assumption in exchange theory. This theory proposes that individuals engage in social interactions as they expect to gain something valuable in return. This exchange can manifest in different forms, such as sharing emotional support, expertise, or favors. Through such interactions, individuals aim to maximize their outcomes and minimize their losses, implying a rational calculation of costs and benefits. Therefore, exchange theory emphasizes the instrumental aspect of social relationships, where social actors enter an implicit contract to exchange resources with the expectation of getting something of similar value in return.