Final answer:
The term referring to an association where parties fulfill each other's social needs is an interpersonal relationship. These relationships are affected by proximity and are often evaluated using social exchange theory, where benefits are weighed against costs.
Step-by-step explanation:
The term that refers to an association in which the parties meet each other's social needs to a greater or lesser degree is an interpersonal relationship. This type of relationship can include friendships, family bonds, work relationships, and romantic partnerships. The concept stems from our need for socialization and the understanding that proximity is a key factor in determining whom we form relationships with, as we are more likely to form bonds with those we are frequently in contact with.
Moreover, when discussing maintaining these relationships, we often evaluate them using the social exchange theory. In this context, we strive to maximize the benefits and minimize the costs associated with our interpersonal relationships. If the benefits, such as companionship and intimacy, outweigh the costs, like potential boredom or financial commitment, the relationship is more likely to persist and be satisfying.