Which technique uses humor or exaggeration to criticize and highlight flaws in society, often found in literature?

The correct answer is satire, which is a literary technique that employs humor, irony, or exaggeration to expose and criticize societal flaws, institutions, or individuals. Satire often aims to provoke thought and inspire change by highlighting the absurdities and contradictions present in society. It takes various forms, from subtle wit to outright ridicule, and is used effectively in works like Jonathan Swift's "A Modest Proposal" and George Orwell's "Animal Farm."

While parody and hyperbole also involve exaggeration, they serve slightly different purposes. Parody specifically imitates the style of a particular work or genre to create a comedic effect, which may not necessarily involve criticism of societal issues. Hyperbole, on the other hand, refers to extreme exaggeration for emphasis or comedic effect but does not inherently include a critique of social conditions. Irony involves expressing something contrary to what is expected, focusing more on contrast than direct criticism of society. Thus, satire uniquely combines humor with social critique, making it the most fitting choice for this question.