Question

In the context of sources of prejudice, when people view those who belong to their own groups more favorably than those who do not, they are involved in _____.

Answer 1

I believe the answer is: social categorization

social categorization refers to the process of categorizing individuals to several social groups based on certain similar characteristics.
Since this similarities make it easier for us to relate with another people, we tend to see the people who possess these similarities as 'better' people.