Final answer:
Edward Thorndike theorized that learning is the result of associations forming between stimuli and responses, leading to habitual behavior (the law of effect). Albert Bandura, on the other hand, developed the concept of observational learning, which includes cognitive processes as part of how individuals learn and develop personality. Hence, option (A) is correct.
Step-by-step explanation:
The individual who theorized that learning occurs as an association between stimuli and responses, with habits forming from this interplay, was Edward Thorndike. Thorndike's work on the law of effect suggested that behaviors followed by satisfying consequences are more likely to be repeated, and those followed by unpleasant consequences are less likely.
In contrast, the concept of observational learning was theorized by Albert Bandura. Bandura posited that learning can occur by watching others, implying that internal cognitive states play a crucial role in learning beyond simple stimulus-response associations.
As for the options given: Thorndike is linked to the law of effect, Bandura to observational learning, Piaget is known for his stages of cognitive development, and Erikson for his stages of psychosocial development.