Final answer:
The Social Learning Theory, proposed by Albert Bandura, suggests that we can learn behaviors by observing others and noting the outcomes of their actions. It incorporates the concepts of reciprocal determinism and self-efficacy in understanding learning and personality development. The correct answer is option B).
Step-by-step explanation:
The theory that suggests we are capable of learning by observing what others do and the consequences they face is called the Social Learning Theory. Developed by psychologist Albert Bandura, this theory posits that much of our learning is vicarious, occurring through the observation of others. This observational learning allows us to learn social behaviors and norms, as well as inhibit deviant behaviors, based on the rewards or punishments others receive. Bandura's Social Learning Theory is deeply intertwined with the concepts of reciprocal determinism and self-efficacy. Reciprocal determinism refers to the interaction between a person's behavior, cognitive processes, and environmental context. Self-efficacy involves our level of confidence in our abilities, which impacts how we approach tasks and which behaviors we choose to imitate.