When a large audience is asked to clap as loudly as possible, it was observed that the bigger the group size the more the increase in noise, but the amount of noise each participant made was reduced. This phenomenon is called:

Social Loafing

The correct answer is Option (2) → Social Loafing

Social Loafing occurs when individuals exert less effort in a group setting compared to when they work alone. In this scenario, while the overall noise level increases with a larger group, the amount of noise made by each individual participant decreases. This reflects the tendency of individuals to put in less effort when they are part of a larger group because they feel less personally accountable for the outcome.