Final answer:
The false statement about social categorization is that it reduces biases and stereotypes. Instead, categorization can lead to increased biases and confirmation bias as individuals often favor their own group over others, possibly resulting in stereotyping and discrimination.
Step-by-step explanation:
The statement among the options provided in the question that is FALSE about why humans engage in social categorization is: "It reduces biases and stereotypes." In reality, social categorization can actually lead to an increase in biases and stereotypes because it enhances the distinction between in-groups and out-groups. Humans categorize to simplify and organize information, to aid in understanding and predicting behavior, and it assists in social identification. However, these categorizations often lead to an in-group bias, which fosters a preference for our group over others and can result in prejudice and discrimination against out-groups. The bandwagon fallacy and confirmation bias are examples of how social categorization can lead to reinforced beliefs within the in-group, even if those beliefs are based on stereotypes or incomplete information.
It is important to be aware of these tendencies in order to reduce their negative impact on both personal interactions and societal structures. Sociology studies can help individuals understand these processes and encourage questioning and challenging of one's own biases and prejudices.