Final answer:
Denial and exploitation is the defense mechanism where individuals do not accept the reality of a situation and manipulate it for personal benefit. This is often accompanied by justifying their actions and shirking responsibility. Such behaviors are unconscious efforts to protect oneself from anxiety.
Step-by-step explanation:
The defense mechanism where individuals refuse to acknowledge a problem or the reality of a situation and exploit it for their own gain is best captured by option A) Denial and exploitation. This behavior is a form of psychological defense mechanism that not only involves denying the existence of a social or personal issue but also taking advantage of the situation for personal benefit.
The Denial of the Victim and Denial of Responsibility are two relevant concepts where the individual justifies their actions by asserting that they were owed something or that their actions were someone else's fault, thereby rejecting any wrongdoing and selfishly benefiting from the circumstances.
Defense mechanisms are unconscious protective behaviors that work to reduce anxiety. They occur without our awareness and can distort reality. Overuse of defense mechanisms can be problematic, as they may prevent individuals from facing reality and taking responsibility for their actions. Examples include rationalization, displacement, and sublimation. These mechanisms protect the ego from being overwhelmed by anxiety.