Final answer:
Selective optimization with compensation theory is the term used by Baltes and Baltes to refer to the process of balancing the gains and losses associated with aging.
Step-by-step explanation:
The term used by Baltes and Baltes to refer to the process of balancing the gains and losses associated with aging is selective optimization with compensation theory.
According to this theory, as we age, our energy diminishes, and we need to select personal goals, optimize our efforts to achieve those goals, and compensate for any losses we experience. This theory suggests that successful aging involves finding a balance between the losses and gains associated with aging.