Final answer:
The classification of a problem as individual or social is not based solely on the number of people affected, as it involves broader implications including societal norms, values, and the potential for collective action.
Step-by-step explanation:
The statement that a problem is determined to be individual or social solely based on the number of people it affects is false. The classification of problems as individual or social implicates deeper considerations than merely the number of people affected. An individual problem pertains to personal issues faced by a single person, while social problems involve issues that have broader implications for society and often necessitate collective action or systemic change.
Factors such as the ability to prevent free-riding, monitor behavior, and the influence of peer pressure make collective action problems less severe in small groups, but do not alone define whether a problem is individual or social. Furthermore, in a social context, it's important to recognize that the decision-making processes and behaviors of individuals can be influenced by societal norms, values, and structures.