Which of the following correctly identifies a difference between taste-based discrimination and statistical discrimination?

Question

Quizplus · Accepted Answer

The key difference between taste-based discrimination and statistical discrimination is the motivation behind them. Taste-based discrimination occurs when employers have a personal preference or bias against certain groups of workers and are willing to forgo profits to avoid employing them. Statistical discrimination occurs when employers use observable characteristics (such as race or gender) as a proxy for unobservable characteristics (such as ability or work ethic) and are trying to enhance profits by avoiding risky hires. Thus, choice C correctly identifies this difference. Choices A, B, and D are incorrect because they do not capture this key difference.

Which of the Following Correctly Identifies a Difference Between Taste-Based