Final answer:
B) Relativistic thinking is the recognition that moral judgments are based on cultural or belief systems rather than absolute standards, contrasting with ethnocentrism and closely related to cultural relativism.
Step-by-step explanation:
The type of thinking where students in a multicultural society or on a college campus realize that judgments of good or bad are often made from a certain belief system, rather than absolute judgments, is called B) Relativistic thinking. This mode of thinking acknowledges that different societies and cultures have their own beliefs, values, and ethics, which are informed by their specific cultural contexts.
Relativism challenges the notion of absolute standards of morality, suggesting that what is considered moral or ethical can vary greatly among different cultures. It stands in opposition to ethnocentrism, which is the belief that one's own culture is superior to others.
Cultural relativism goes a step further by asserting that one culture should not judge another culture because each has developed its own valid system of values and ways of living.